Jindal Steel & Power keen to acquire Reliance Naval & Engineering Ltd
Shares of Reliance Naval & Engineering Ltd (RNEL) were locked at the upper circuit on Wednesday on reports that Jindal Steel & Power (JSPL) and two others are interested to acquire the company.
On the BSE, the Reliance Naval scrip ended 4.79 per cent higher at Rs 3.06. Around 8 lakh shares were transacted on the exchange against a two-week average of 6.65 lakh shares.
A Bloomberg report said Reliance Naval can be a captive client for its ship building plates. The report added that Dubai-based shipping firm GMS and Kotak Special Situations Fund have also registered to bid for Reliance Naval. RNEL is now undergoing a debt resolution process in the National Company Law Tribunal (NCLT).
It has an outstanding debt of around Rs 11,000 crore and IDBI Bank, the lead banker of the consortium of lenders of RNEL, had taken the company to NCLT Ahmedabad because of a default in loan repayment.
The NCLT has upheld the petition of Doha Bank seeking priority payment for the financial creditors of Reliance Infratel which will lead to around Rs 3,515 crore recovery for the lenders, according to a source aware of the development.
The payment has to be made from a payment of about Rs 4,400 crore realised from sale of assets to a Reliance Industries subsidiary.
According to the source, State Bank of India will receive Rs 728 crore.