M&A Magazine

The Board of Directors of Lux Industries Limited have approved the scheme of merger of its group entities J. M. Hosiery & Co. Limited and Ebell Fashions Private Limited with Lux Industries Limited. Lux Industries Limited (Lux), incorporated in 1995 is one of the largest players in the hosiery business in India. Products include Men’s, Women’s & Kids Innerwear, Winterwear, Socks & Slacks for Women in varied colours and designs. LUX has a presence across the globe with exports to 47 countries. J.M Hosiery & Co. Limited (JM) is engaged in the business of manufacturing, marketing, selling and distribution of knitted apparel including hosiery. The Manufacturing unit of the company is in Tiruppur in the state of Tamil Nadu. Ebell Fashions Private Limited (Ebell) is engaged in the business of manufacturing, marketing, selling and distribution of knitted apparel for women’s. The Manufacturing unit of the company is in Dankuni, Kolkata. Transaction The prime ...

MBL Infrastructure Ltd ( MBL Infra ) is engaged in the execution of civil engineering projects. The Company provides integrated engineering, procurement and construction (EPC) services for civil construction and infrastructure sector projects. Equity shares of company is listed on BSE & NSE and current market cap of the company is Rs. 58.24 crores. Insolvency Resolution Process & Resolution plan: Last year on 30 th March 2017 NCLT accepted an application filed by RBL bank for initiation of Corporate Insolvency Resolution Process (CIRP) against MBL Infra. During CIRP, a  resolution plan submitted by MBL promoter A.K Lakhotia is accepted by Committee of Creditors (CoC) and approved by NCLT by its order dated 18/04/2018. Table 1: MBL Infra - Admitted claim (Rs in crores) Particulars Admitted claims % of total claim Financial Creditors 1,428.21 94.78% Operational Creditors 78.66 5.22% Total 1,506.87 100% Liquidation Value 269.9   ...

Ashapura Intimates Fashion Limited (Company) is a Mumbai based company listed on Bombay Stock Exchange (BSE). The Company is innerwear retailer doing business under the brand name ‘Valentine’. Entire Equity Share Holding of Promoters and Promoters Group in the Company is 57.35% of the Equity Share Capital of the Company. On 10 th October 2018, IIFL Securities Limited (IIFL Securities) has made disclosure to the BSE & the National Stock Exchange pursuant to Reg 29 (1) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) 2011 (Takeover Code) , stating that i.) 10,61,000 Equity Shares of the Company held by its promoters  were encumbered (pledged) in favour of India Infoline Finance Limited (IIFL) aggregating to 4.21% of the equity share capital of the Company against loan of Rs. 10 Crores obtained and ii) IIFL Securities has further acquired 72,40,774 equity shares of the Company held by the promoters, by way of encumbrance ...

Tata Group is one of the oldest and biggest group in the country. The group has many companies and we always see restructuring happening in the group and subsidiaries year after year. There can be many reasons behind internal restructuring like better group structure, selling of profitable or nonprofitable business, consolidation of similar businesses etc. In a similar restructuring, we are seeing that TATA Motors shall be giving its Defense Business to TATA Advanced Systems via a Slump Sale Transaction. TRANSACTION: TATA Motors Ltd. (TML) , the Transferor Company has recently on 11 th September 2018 filed a draft scheme of Arrangement with the Bombay Stock Exchange proposing to sale the Company's Defense Undertaking to Tata Advanced Systems Limited (TASL) , Transferee Company, a wholly-owned subsidiary of Tata Sons Limited, to be entered into between the Transferor Company, Transferee Company  and their respective members and/or creditors, as the case may be, pursuant ...

Insolvency Proceedings Scenario: In order to tide over the mounting non-performing assets of banks, especially in the power and steel sector, the government legislated Insolvency and Bankruptcy Code (IBC). After one and a half year, lender’s filing cases against defaulting corporate debtor started picking up the pace, but only a few are reaching its desired conclusion and yielding in resolution plan. As per information available (June 2018), 33 cases have successfully resolved the matter by way of resolution plan till date. Amongst them, the bigger names are Bhushan Steel and Electro Steel steels Ltd which are part of 12 companies which were initially recommended by RBI for insolvency proceedings . In these two companies, financial creditors have taken a haircut of 36.51% and 59.62% respectively. Table 1: Top 10 Cases Resolved under the IBC (All figs in INR Crores - As of June 2018) Sl. No. Name of Corporate Debtor Total Admitted Claims Admitted Claims of FCs # Liquidati...

Consolidation is picking in the radio industry. In a move to take on other radio giants, the two separately listed entities HT Media Limited and Next Mediaworks Limited has decided to consolidate their operation. HT Media Limited (HTML) is a media conglomerate with interests in the newspaper, radio, digital media and education businesses. The Company is involved in printing and publishing of English newspaper ‘Hindustan Times’, Hindi newspaper ‘Hindustan’ and Business newspaper ‘Mint’. HT Music & Entertainment Company Limited (HTMEL ) is a wholly owned subsidiary of HTML which is operating the FM Radio station in Chennai. Next Mediaworks Limited (NML) is a listed holding company of Next Radio Limited (NRL) which operates FM radio stations under the brand “Radio One” in Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Pune and Ahmedabad. Radio Business of HTML The company operates radio stations under the brand names of ‘Fever’ and ‘Nasha’. Fever FM operates a ra...

Flipkart-Walmart deal is the most talked about acquisition news in the past months. Officially, Walmart has now completed its 77% acquisition in Flipkart and has also got a go ahead from Competition Commission of India . But amidst the good news, is a bad one also where the retail traders across India have reportedly got affected and offended, pertaining to the new threat posing in front of them as the foreign giant is trying to enter retail market of India directly or indirectly. Let us go through the sequence of events in this Article in which the traders have taken legal recourse against the E-Commerce Unicorn and what are the laws in context. Competition Act, 2002 and Power of Competition Commission of India (CCI) Competition Act, 2002 provides for establishment of a Commission to prevent practices having adverse effect on competition among other aims. Legally, for any Acquisition (termed as a ‘ combination’ under the Competition Act, 2002) taking place involving entit...