India: Nithia Capital, CarVal complete $273m acquisition of Uttam Group firms

Photo: Reuters

Nithia Capital, a UK-based alternative investment manager that specializes in transforming under-performing acquired facilities into financially healthy business, and CarVal Investors, a global alternative investment manager focused on distressed and credit-intensive assets, announced on Tuesday that they have completed the acquisition of Uttam Galva Metallics Limited (UGML) and Uttam Value Steel Limited (UVSL) for a total consideration of ₹2,000 crore. The purchase is done through Wardha Steel Holdings Pte Ltd, Nithia Capital’s Singapore-based joint venture holding company.

In 2019, a consortium of lenders led by SBI had initiated insolvency proceedings against two distressed entities of Uttam Galva Steels, which were recommended for corrective action by the RBI in its second list of large defaulters. The resolution professional (RP) admitted ₹3,634 crore of financial creditor claims in Uttam Galva Metallics while it was at ₹2,479 crore for Uttam Value Steel, as on 9 April, 2020, according to Mint. Union Bank of India has the highest exposure in Uttam Galva Metallics at ₹921 crore, followed by Bank of Baroda at ₹680 crore and Punjab National Bank at ₹571 crore, among others.

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