Share of Videocon Industries rose 5 per cent after the Mumbai bench of the National Company Law Tribunal (NCLT) approved Vedanta Group's Twin Star Technologies' resolution plan for Videocon Industries Ltd.
As per the resolution plan, Videocon Industries will be delisted and Twin Star Technologies will pay Rs 2,962 crore against Videocon's total debt of Rs 31,000 crore.
Twin Star will pay around Rs 500 crore within 90 days as upfront payment and the rest as non-convertible debentures over a period of time.
Earlier in December, Videocon's lenders had approved the bid submitted by Twin Star Technologies.
Share of Vedanta also rose over 1 per cent to hit an intraday high of Rs 277.50 on BSE. The stock has gained 164 per cent in the last 12 months and risen 71 per cent since the beginning of this year.
Vedanta's interest in Videocon is principally driven by the latter's 25 per cent stake in the Ravva oil field. Vedanta, through Cairn, holds a 22.5 per cent stake in Ravva and after this success, it will take its stake to 47.5 per cent, and will be the biggest stakeholder ahead of ONGC at 40 per cent.
This approval will also now consolidate Vedanta''s hold in the Ravva oil field, PTI reported.
The average output from the Ravva block in FY20 was 14,232 barrels of oil equivalent per day (boepd). It increased to 22,037 boepd in the first quarter of FY21.
"The said Resolution Plan, as approved by the CoC, had been filed with the NCLT in accordance with Section 30(6) of the Code for its approval on December 15, 2020. This is to further intimate you that Hon'ble NCLT has pronounced the order on June 08, 2021, approving the Resolution Plan for the Consolidated Corporate Debtors including the Company, under Section 31 of the Code," the company said.
The company further added that the approval order has not yet been published and is currently awaited.
Videocon Industries owes around Rs 31,000 crore to the banks, which also includes interests.
The consortium of lenders had rejected Videocon promoter Venugopal Dhoot's settlement offer in December 2020
Earlier, the Dhoot family had offered to pay Rs 30,000 crore to lenders to settle their outstanding loans and pull out 13 Videocon group companies from the insolvency proceedings.
Dhoot's settlement offer was made for 13 out of the 15 Videocon group companies, which are jointly going through the Corporate Insolvency Resolution Process (CIRP).
State-owned lender SBI had filed an insolvency plea against Videocon Industries in December 2017.
Subsequently, insolvency proceedings were also started against 15 other entities of the group, while keeping the two entities, KAIL Ltd and Trend Electronics Ltd, out of the consolidation plan.
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