Auto components major Bharat Forge Ltd has fully acquired a group company which will buy stressed Sanghvi Forging & Engineering Ltd under the bankruptcy process.
The Pune-based firm has bought Nouveau Power & Infrastructure Pvt Ltd for Rs 1 lakh to undertake the acquisition.
Nouveau Power was incorporated in 2011 at Pune to engage in the business of generating power by conventional and non-conventional methods. However, the company did not commence any operations.
The firm has not generated any turnover for the last three years.
The news comes after the National Company Law Tribunal (NCLT) approved Bharat Forge’s resolution plan for Sanghvi Forging last week, which entered insolvency in August 2019 on a plea by Bank of Baroda.
In December 2020, apart from Bharat Forge, three others had submitted resolution plans – Rimjhim Ispat, Shree Yash Stainless Steel, and Rajputana Stainless.
In January next year the committee of creditors consisting of State Bank of India and Bank of Baroda approved the offer by Bharat Forge with 100% vote.
Under the resolution plan, Bharat Forge will pay an aggregate amount of Rs 77.06 crore, of which Rs 75 crore will go to financial creditors.
Headquartered in Vadodara in Gujarat, Sanghvi Forging had admitted debt claims of around Rs 223.7 crore. Its lenders will get a haircut of almost 66%.
Established in 1961 in Pune, Bharat Forge is a globally renowned auto component supplier with a manufacturing presence across India, North America and Europe.
It serves several sectors including automotive, power, oil & gas, construction & mining, rail, marine, aerospace and defence. The company offers engineered and value-added products in automotive and industrial segments.
Bharat Forge has 11 manufacturing facilities across five countries -- five in India, three in Germany, and one each in Sweden, North America and France.