M&A Magazine

KPIT Technologies Ltd (KPIT) , is a global technology company specialised in providing IT consulting and product engineering solutions and services to automotive, manufacturing, energy and utilities and life sciences companies. They currently partner with over 200 global corporations and has filed more than 60 patents in various domains such as Automotive, Very Large-Scale Integration (VLSI), High Performance Computing, Manufacturing, Energy, Model Based Design (MBD), among others. The equity shares of KPIT are listed on NSE and BSE. The market cap of KPIT on BSE is around Rs 4,000 crore. The main aim of the complex restructuring by KPIT seems to be separating its IT and Engineering Services. Birlasoft (India) Ltd (Birlasoft) is an information technology corporation headquartered in Noida, India. Founded in 1995, the company employs over 4,000 employees, globally located in 4 continents across offices in USA, Europe, Australia, Singapore and Malaysia. It is a  part of the...

Ever since the government introduced the bankruptcy law, host of companies right from steel, power, cement and construction have put their distressed assets on sale and potential bidders are chalking out deals to snap up assets of loan defaulting companies. The wave of deal-making can push mergers and acquisitions (M&A) at a record high level this year. With banks pushing for change in management of loan defaulting companies, that will result in bigger corporate assets which will be available for acquisition at a throw-away price. Swift, time-bound resolution or liquidation of stressed assets will be critical for de-clogging bank balance sheets and for efficient reallocation of capital. Stressed assets are in multiple sectors, so M&As are expected to happen in multiple sectors. Rising stressed assets with banks The Reserve Bank of India has mandated early bankruptcy resolution of 12 cases, which account for a bulk of the stressed assets of banks.   These cases ar...

PENNAR INDUSTRIES LIMITED (PIL) , is one of the leading engineering organisations in India well known for its expertise in providing engineered products and services. It began operations in 1988, with a strategic decision to establish first manufacturing plant at Isnapur, near Hyderabad with an installed capacity of 30,000 MTPA to manufacture Cold Rolled Steel Strips (CRSS). Pennar increased its manufacturing capacity to 50,000 MTPA in 1997. The series of strategic acquisitions and expansion plans, most notably among them being acquisition of Nagarjuna Steel Ltd.; Press Metal, a unit of Tube Investment (TI) near Mumbai and, the more recently, the assets of Wayne Burt Petrochemicals, erstwhile Bailey Hydro, for venturing into Hydraulic Cylinders segment. They have also established a new manufacturing facility at Chennai and have set up an assembly unit at Hosur, near Bangalore to meet the requirements of Auto Components. Currently, the company is engaged in the following segment...

One of the fundamental features of the Insolvency and Bankruptcy Code , 2016 (Code) is to resolve disputes in a timely manner — a window of 180 days extendable to 90 days — — given to the Insolvency Professional to help revive the company. Otherwise, it triggers mandatory liquidation due to non-approval of the resolution plan. Though there is an established process of liquidation devised by the Code, it is seen that the Insolvency Professionals appointed as liquidators do face practical hurdles while undergoing the process of liquidation. Following are some possible hurdles and the underlined solutions. 1. Submission of claims by the Creditors of the Corporate Debtor (CD) The liquidator has to make a public announcement for submission of claims by the creditors of the company. However, some creditors may take the announcement as a repetitive attempt and do not submit their claim. There is also an additional cost and time on the part of creditors to submit their claims i.e...