Evonith Steel raises Rs 1,700 crore to repay bondholders

NEW DELHI: Evonith Steel (formerly Uttam Galva Metallics and Uttam Value Steels) has raised Rs. 1700 crore from Standard Chartered Bank, JP Morgan, IndusInd Bank and Catholic Syrian Bank to repay existing creditors that include Indian banks and AB Carval who had subscribed to non-convertible debentures issued by the company, according to a company release.

The new funds will help the company extend debt maturities and reduce the cost of the debt it is carrying resulting in overall balance sheet improvement, the company said.

UK-based Nithia Capital had acquired Uttam Galva Metallics and Uttam Value Steels through the insolvency and bankruptcy code (IBC) process in January 2021 for a consideration of Rs. 2000 crore.


The companies were renamed Evonith Metallics Limited and Evonith Value Steel Limited and are collectively part of Evonith Steel.

Evonith Steel is an integrated mid-size flat steel producer located at Wardha in Maharashtra with a current annual installed capacity of upto 1 million tonne per anum of crude steel. The facilities are strategically located in central India near Nagpur with a captive railway siding and other essential infrastructure facilities, enabling access across all major markets countrywide and proximity to raw materials.

Evonith Metallics Limited provides the hot metal/pig iron for Evonith Value Steel Limited and third parties to manufacture steel. Evonith Value Steel Limited manufactures steel from this hot metal to produce value added flat steel products such as hot rolled coil, cold rolled coil and galvanized coils and sheets.

Founded in 2010, Nithia Capital is a global investment and advisory firm that specializes in turning around heavy asset-backed underperforming industries in steel, power, resources and allied industrials.

Jai Saraf and Rajib Ranjan Guha are part of Nithia Capital's supervisory board.