Vedanta Shares: A new company is going to be added to the portfolio of Vedanta Limited. In fact, the Kolkata Bench of the National Company Law Tribunal (NCLT) on Wednesday approved Vedanta’s resolution plan for debt-ridden Incab Industries Ltd. This means that now Vedanta will have 100 percent ownership of this company. This company was stuck in IBC (Insolvency and Bankruptcy Code) for the last six years.
How much will the deal cost?
NCLT said that Vedanta will give a financial package of Rs 545 crore to buy 100 percent stake in the paid-up equity shares of Incab Industries. Apart from this, Vedanta will also settle all sanctioned claims of Gratuity and Employee Provident Fund Organisation. With this decision of the Tribunal, shares of Vedanta Limited rose by 2 percent during trading on Thursday and its price reached a high level of Rs 542.
What will be the benefit to Vedanta?
Incab Industries manufactures products like power cables, industrial wires, fiber optic cables, in which copper and aluminum are used as main raw materials. With this acquisition, Vedanta will further strengthen its hold in the downstream copper and aluminum industry.
Vedanta told stock exchanges NSE and NSE, “Copper and aluminum are the main raw materials for manufacturing power cables and industrial wires, hence this acquisition will provide vertical and downstream synergy to Vedanta. Additionally, the Pune plant is just 300 km away from Vedanta’s Silvassa copper unit. This acquisition will help the group to grow in downstream copper and aluminum and expand in infrastructure and transmission.” Will get it.”
Incab has two big manufacturing plants in Jamshedpur and Pune. Both are currently closed. After purchasing the company, Vedanta can get it back operational, for which the company will have to invest capex and working capital in it. Vedanta’s production setup already includes units like copper rod, aluminum rod and wire mills, which are used extensively in various industries. Now with the addition of Incab Industries to the company’s portfolio, it will get direct entry into the downstream business. Entry will be available in power cable and transmission sector. This will give a boom to the infrastructure of the country.
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