Global advisory and investment firm Nithia Capital said on Tuesday that it acquired Crest Steel & Power out of bankruptcy for a total consideration of Rs 600 crore (around $80 million).
It acquired Crest in partnership with Amalgam Steel Pvt Ltd. Nithia has a majority control in the partnership.
“With our newly forged partnership with Amalgam Steel, we believe Crest will soon achieve a successful turnaround and is well set on its planned growth programme,” said Jai Saraf, founder of Nithia Capital.
Vedanta’s Sesa Resources, Real Ispat & Power,
Sunil Kumar LLP and Orissa Metaliks were also in the fray to acquire Crest Steel. The Cuttack bench of the National Company Law tribunal had cleared the resolution plan in November 2021.
Nithia Capital had proposed to infuse around Rs 80 crore within 12 months for capital expenditure at the company’s pellet and captive power unit.
In January 2021, Nithia Capital along with CarVal Investors had acquired Uttam Galva Metallics Ltd and Uttam Value Steel Ltd for Rs 2000 crore.
“The acquisition of Crest is an important and strategic step for Nithia and is our second steel investment in India,” Saraf said.
Crest is an integrated steel plant with a sponge iron capacity of 225-kilo tonne per annum (KTPA) and a steel billet capacity of 80 KTPA. It has more than 400 acres of land and extensive room for brownfield expansion with a private railway siding.
Nithia, which specialises in turning around stressed assets in various sectors, had also looked at major assets like Essar, Bhushan and Monnet Ispat before larger steel players started showing interest.
Crest was under corporate insolvency resolution process since August of 2018. The admitted financial debt of Crest totalled Rs 3,118.73 crore in 2020.
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