The plan submitted by Dalmia Bharat Ltd for acquiring debt-laden Murli Industries Ltd has been approved by Murli’s creditors.
Murli Industries is undergoing a corporate insolvency resolution process initiated by National Company Law Tribunal. The company was referred to the corporate insolvency resolution process by its lenders in April 2017.
Dalmia Bharat has submitted the acquisition plan through its subsidiary Dalmia Cement (Bharat) Ltd.
The plan provides for a payment of Rs 402 crore ($62.8 million) which is 1.7 times higher than the determined liquidation value, Dalmia Bharat said in a stock exchange disclosure.
Murli Industries’ creditors recommended the resolution plan to the National Company Law Tribunal for its approval.
Incorporated in 1991, Murli Industries’ businesses include edible oil refining, pulp, paper, paperboard manufacturing and cement.
The firm has an integrated cement manufacturing plant with an installed capacity of 3 million tonnes per annum along with a captive 50 megawatt thermal power plant in Chandrapur district in Maharashtra.
The company also has paper and solvent extraction units in Maharashtra, according to the statement.
Dalmia Bharat is looking to increase its cement manufacturing capacity through the acquisition. It has an installed cement manufacturing capacity of 25 million tonnes, according to its latest annual report.
The firm has manufacturing units in 11 locations in eight states.