Vedanta shares touched a new 52-week high of ₹541.25 after the company announced that the National Company Law Tribunal (NCLT) Kolkata has approved its resolution plan to acquire Incab Industries Limited for ₹545 crore under the Insolvency and Bankruptcy Code (IBC). As of 9:42 AM, the shares were trading 1.50% higher at Rs 540.80.
According to Vedanta’s disclosure under Regulation 30, Incab Industries is engaged in manufacturing power cables and industrial wires that primarily use copper and aluminium as raw materials. The company has its head office in Kolkata along with two manufacturing plants, one in Jamshedpur and one in Pune. Its production profile includes power cables, rubber and plastic products, fibre optic cables, winding wires, and rod mills for copper and aluminium. All facilities are currently non-operational.
Vedanta stated that the transaction is not a related-party deal and that the promoter or group companies have no interest in Incab. The target company operates in the power cable manufacturing industry.
The company said the acquisition will add vertical and downstream synergies due to the copper and aluminium requirements in cable manufacturing. It also noted that the Pune plant is located about 300 km from Vedanta’s Silvassa copper unit. The company expects the acquisition to support its downstream copper and aluminium plans as well as expansion in infrastructure and transmission segments.
Incab was admitted into insolvency on August 7, 2019. The Committee of Creditors approved Vedanta’s resolution plan on June 23, 2022, and NCLT Kolkata has now cleared the plan.
Vedanta plans to complete the acquisition within 90 days of the order. The transaction involves an upfront cash consideration of ₹545 crore, funded through internal accruals. Upon completion, Vedanta will acquire 100% of the paid-up capital and full management control of Incab Industries. The company said that capital expenditure and working capital will be infused to revive the plants.
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