India’s Uttam steel mills assets acquired by asset managers Nithia Capital

Wednesday, 06 January 2021 12:19:50 (GMT+3)   |   Kolkata

The financially distressed steel mill assets of India’s Uttam Galva Metallics Limited (UGML) and Uttam Value Steels Limited (UVSL) have been acquired by asset managers Nithia Capital and CarVal Investors, according to a statement issued by the acquirers on Wednesday, January 6.

“The acquisition of Uttam is an important and strategic step for Nithia Capital. Nithia envisions to create a consolidated steel operating platform of up to two million mt per year steel production per year in India through acquisition and organic growth,” Jai Saraf, founder and CEO of Nithia Capital, said in a statement.

“We have been looking at multiple steel acquisition opportunities in India over the last few years and we are confident that we will continue to grow and build further on the success of Uttam. We consider India to be the engine of growth for world steel for the next 20-25 years and our intention is to actively participate in it,” he said.

The acquisition of Uttam’s steel mills was through the bankruptcy resolution process and approved by the National Company Law Appellate Tribunal. The two companies of Uttam have outstanding debts of around $1.01 billion and were recommended for resolution by the Reserve Bank of India after the latter put the companies in the list of large defaulters.

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