Monnet Ispat surges 3% on reports Aion-JSW may acquire co's stressed assets

NEW DELHI: Shares of Monnet Ispat and Energy climbed nearly 4 per cent in morning deals on Wednesday after reports that a consortium of Aion Capital Partners and JSW emerged the strongest contender for acquiring the firm. Monnet Ispat is one of the initial 12 companies shortlisted by the Reserve Bank of India (RBI) for insolvency proceedings.

Aion Capital is a JV between ICICI Venture and Apollo Global Management. Banking sources said the Aion-JSW offer is an all-cash one, making it a compelling proposal for lenders. Aion is the senior partner in the consortium, according to a report by ET.

The company owes the lenders around Rs 10,300 crore. Its consolidated losses as of March amounted to Rs 2,132 crore on total revenue of Rs 1,375 crore.

Shares of the company closed Wednesday's session 2.10 per cent up at Rs 34 on BSE.