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Electrosteel acquisition by Vedanta is credit neutral, says Ind-Ra
New Delhi, April 20 (IANS) Anil Agarwal-led Vedanta Ltd’s acquision of 90 per cent stake in the stressed asset Electrosteel Steels Ltd (ESL) through insolvency proceedings was “credit neutral”, according to a India Ratings and Research (Ind-Ra) report released on Friday.
According to the report, the acquisition will provide a modest improvement to acquirer business profile with a focus on value-added steel products. Vedanta has a 0.8 mtpa (million tonne per annum) pig iron capacity in Goa and the acquisition will add 1.5 mtpa steel capacity now and another one mtpa upon the completion of expansion programme.
“The acquisition will provide synergies in form of forward integration of ESL steel plant with Vedanta’s possible mining operations in Jharkhand,” it said.
The research note also said the acquisition would have marginal impact on Vedanta’s balance sheet leverage.
“FY19 net leverage is likely to increase to a range of 2.3x-2.5x. This will be due to a combination of events including the cash outflows relating to the ESL acquisition and stoppage of Goa iron ore mining and copper smelting operations,” it said.
The Kolkata bench of National Company Law Tribunal recently had approved the resolution plan of insolvent ESL.
According to the plan, a wholly-owned subsidiary of Vedanta, will subscribe for the share capital of Electrosteel for an aggregate amount of Rs 1,805 crore ($275.7 million) and provide additional funds aggregating of Rs 3,515 crore by way of debt,” the company had said in a statement.
Upon implementation of the resolution plan, the company will hold approximately 90 per cent of the paid up share capital of the steel maker. The remaining 10 per cent will be held by Electrosteel’s existing shareholders and the financial creditors who receive shares in exchange for the debt owed to them, it added.
The funds received by steel maker as debt and equity will be used to fully settle the debts owed to the existing financial creditors, by payment of Rs 5,320 crore, it said.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.