New owners of this steelmaker offer Re 0.098495 per share for delisting

NEW DELHI: If you are a shareholder of Adhunik Metaliks and were hoping for a good deal from the new owners for your stake, you may as well forget that.

Sanjeev Gupta-owned Liberty House, which acquired the company via insolvency process, is offering Re 0.098495 per share for delisting the stock. This means a discount of about 80 per cent against the current price of Re 0.49.
It should be noted that trading in the stock has been suspended for procedural reasons since November last year, and this may be perhaps the only route of recovering some value for shareholders.


Liberty Group in its proposal for delisting said the price it is offering is higher than the liquidation value determined under the Insolvency Code. In total, it will pay Rs 60 lakh for 6,09,16,798 shares to the shareholders.

“No payment is proposed to be made to any promoters or promoter Group or other existing shareholders of the company under the terms and conditions of the approved plan,” the offer document read.

Retail or non-institutional investors hold about 47 per cent of the shares in the company. Total public shareholding is Rs 49.33 per cent, as per the March quarter shareholding data released by the company.

Adhunik is an integrated steel plant located in Chadrihariharpur near Rourkela in Odisha. It has blast furnace and electric arc furnace steel-making capability with an annual capacity of 0.5 million tonnes, besides a 34MW captive power plant.