Jindal Saw Wins Approval To Acquire Sathavahana Ispat

Steel pipemaker Jindal Saw Ltd. received the National Company Law Tribunal’s (NCLT) approval to acquire Sathavahana Ispat Ltd. under its insolvency resolution process.

The Hyderabad bench of the NCLT passed an oral order on 31 March, approving the company’s submitted resolution plan for the seller of pig iron, metallurgical coke and ductile iron pipes, Jindal Saw said in a stock exchange announcement.

Sathavahana's Resolution Professional Bhuvan Madan also confirmed the development in a separate stock exchange announcement. He didn’t disclose the financial details.

Jindal Saw’s resolution plan, which involves merger of Sathavahana with the company, offered the bankrupt firm’s stakeholders about 694 crore rupees ($85 million), according to the NCLT’s order.

The Hyderabad, Telangana-based Sathavahana has been undergoing the corporate insolvency resolution process (CIRP) following the NCLT's order on 28 July 2021. The insolvency petition was filed by Thirumala Logistics, an operational creditor of the company.

During the CIRP, Madan received resolution plans from Vedanta Ltd. and Jindal Saw for Sathavahana. The company's committee of creditors (CoC), which comprised of the sole financial creditor J.C. Flowers Asset Reconstruction Private Ltd. with 100% voting share, later approved Jindal Saw's resolution plan and declared it as the successful resolution applicant on 19 October 2022.

Madan later sought the approval of the NCLT for the resolution plan of Jindal Saw.

Sathavahana's pig iron facility has a rated capacity of 210,000 tons per annum (tpa), while its metallurgical coke facility has a rated capacity of 450,000 tpa, according to its website.

The company, whose ductile iron pipe making facility stands at 210,000 tpa, also has a 50-megawatt co-generation cum thermal power plant, it said.

Jindal Saw, part of O.P. Jindal Group, manufactures submerged arc welded pipes (SAW pipes) and spiral pipes for the energy transportation sector, carbon, alloy and seamless pipes and tubes for industrial applications, as well as ductile iron pipes & fittings for water and wastewater transportation, according to its website.

(Note: $1 = 82.1693 Indian rupees)

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