M&A Magazine

Tata Steel has acquired Bhushan Steel (BSL) through its wholly-owned subsidiary Bamnipal Steel Ltd (BNL) through a resolution under the Insolvency and Bankruptcy Code ( IBC ) . Tata Steel has taken a controlling stake of 72.65% in BSL and paid the admitted corporate insolvency costs and employee dues, as required under IBC. Bhushan steel was one of the few resolved amongst 12 companies recommended by RBI under Insolvency and Bankruptcy Code . Tata Steel Ltd (TSL) is part of Tata Group and a public limited company engaged in the business of manufacturing steel and offers a broad range of steel products including a portfolio of high value-added downstream products such as hot rolled, cold rolled and coated steel, rebars, wire rods, tubes and wires. The equity shares are listed on BSE and on NSE. The market cap of the company is Rs 57,123 crores (approx.). Bamnipal Steel Limited (BNL) is a public limited company incorporated on January 19, 2018 formed as an SPV (Special Purpose...

Reliance Industries Limited ( RIL ) is a Fortune 500 company and the largest private sector corporation in India. Reliance's products and services portfolio touches almost all Indians on a daily basis, across economic and social spectrums. The company has evolved from being a textiles and polyester company to an integrated player across energy, materials, retail, entertainment and digital services. The home-grown crude-to-yarn-to-telecom-to-e-commerce conglomerate, RIL, has purchased the 259-year-old British toy store chain Hamleys from C.Banner International Holdings for Rs 620 crore . This buyout, including a host of other stake purchases or outright acquisitions in the past six months, is the strategy of Mukesh Ambani to push for consumer business, which he feels will contribute nearly as much as to the conglomerate’s total earnings as its core energy business by the end of 2028. Globally, too RIL aspires to be among the top 20 companies and along with refining and petrochem...

There have been a lot of mergers/amalgamations over the years where the transferor and transferee companies are registered in different states and have assets in different states. Any Amalgamation is carried out by drafting a scheme detailing the transfer of business in whole for consideration in equity or cash. Currently, the schemes are to be presented to the NCLT of each state where the transferor and transferee companies have its registered office.  Respective NCLT passes the order sanctioning the scheme.  The ORDER , thus passed, is liable to levying of stamp duty . This is where the trouble is right now, payment of stamp duty is fine but the questions of which state should the stamp duty be paid, how much rebate can one get in case of paying stamp duty in both states, paying stamp duty in the respective state as per the value of assets which are transferred is to be considered or the worst to pay stamp duty in all the relevant states without rebate at full amount ap...

In order to streamline the group's business and maximise shareholder value, the country's largest private sector healthcare provider, Apollo Hospitals has spinned off its front-end retail pharmacy business into Apollo Pharmacies ( APL ), which in turn will be a wholly-owned subsidiary of Apollo Medicals Pvt Ltd ( AMPL ). Also, Apollo will enter brand licensing agreement with APL to licence the Apollo Pharmacy brand to the frontend stores and online pharmacy operations. The reorganisation, according to the company, will not have a material impact on the financials of Apollo as the backend business related to the standalone pharmacies will continue to be held by Apollo. The reorganisation enables Apollo to be compliant with the norms of foreign direct investment (FDI) limits and further grow the pharmacy retail business. At present, retail pharmacy business comes under the category of multi-brand retail, where FDI is allowed up to 51%. The organised pharmacy retail accoun...

Mumbai-based Ganesh Benzoplast has decided to restructure and reorganise the company with the demerger of the chemical business.  It has also segregated both the divisions -- Chemical and LST business – by demerger. As both the divisions have totally different synergies, the demerger will ensure greater focus to the operation of each of the divisions and enhance profitability and generate maximum shareholder value. Ganesh Benzoplast Ltd (GBL) is a public limited company, having two divisions, one being Liquidity storage Terminal division (LST) which is related to providing conditioned storage facilities (Liquidity storage Terminal division – LST) for bulk liquids and chemicals at JNPT, Cochin and Goa, In LST division, the Company has a combined storage capacity of more than 3,00,000 KL, for storage of all types of Liquid Products.  And  Chemical division which is related to manufacturing, export and import of premium range of speciality chemical, food preservati...

Taking ahead the growing trend of  consolidation  in the financial sector a step further, Chennai-based  Lakshmi Vilas Bank  (LVB) will merge with Gurugram-based  Indiabulls Housing Finance Ltd , one of the fastest growing mortgage lender, in an all share-swap deal. In the proposed deal, the shareholders of  LVB  will get 14 shares of Indiabulls Housing Finance Ltd ( IBHFL ) for every 100 equity shares held in the bank. The deal implies a 36% premium to the closing price of LVB on April 5, 2019 and 63% premium to the bank’s last six months’ average price. The merged entity would have a net worth of Rs 19,472 crore and a loan book of Rs 1.23 lakh crore as of December 2008. Also, the entity’s capital adequacy ratio will be 20.6%. At present, IBHFL’s market capitalisation is 13 times that of LVB. The merger is expected to take 6 to 12 months as it would require regulatory approvals from RBI, National Housing Bank, CCI, SEBI and NCLT. The new entity wo...