IMFA merges ICCL to create ferro alloy giant
Indian Metals and Ferro Alloys Ltd (IMFA) has merged its subsidiary Indian Charge Chrome Ltd (ICCL) with itself creating country’s largest fully integrated ferro alloy company.
By Subhash Narayan, TNN |
NEW DELHI: Indian Metals and Ferro Alloys Ltd (IMFA) has merged its subsidiary Indian Charge Chrome Ltd (ICCL) with itself creating country’s largest fully integrated ferro alloy company.
The merger follows pronouncement of judgement in this regard by the Orissa High Court. The court had earlier reserved its judgement on an application for approval of scheme of arrangement and amalgamation by the company.
“We have merged our subsidiary ICCL with the parent company that would provide the combined entity operational and financial synergies. A formal letter for registering this merger would soon be filed with the registrar of companies after company’s board meeting,” director IMFA Subhrakant Panda told ET.
He said that merger follows a debt restructuring package cleared by financial institutions led by IDBI. The company was in red few years ago and it was felt that operations of main raw material producing company ICCL should be merged with IMFA to help its ferro chrome business.
The promoter stake-holding will be 57% in the merged entity that has a net worth of Rs 124 crore. Mr Panda said that with steel market looking buoyant demand for ferro alloy is expected to jack up providing company enough room to grow further.
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The company also plans to invest Rs 700 crores over next three years to increase its ferro alloy capacity from present 2,35,000 tonnes to 3,50,000 tonnes. It has also set a target of increasing its turnover to over Rs 1000 crore by 2010.Start a SIP with as low as ₹500 with ET Money App!
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