Vikas Ecotech Ltd (VEL) on Tuesday said it has acquired Shamli Steel for Rs 160 crore. It has also infused an initial working capital of Rs 15 crore in Shamli Steel and plans to invest another Rs 35-50 crore over the first 3-6 months after taking over the operations of the plant, according to a regulatory filing.
“Vikas Ecotech acquires 100 per cent equity of Shamli Steel at an enterprise value of Rs 1600 million (Rs 160 crore) in a share swap deal,” it said.The acquisition is capable of contributing to the gross revenue of the company by an additional Rs 900 crore and will provide an edge to the company while expanding its footprint in the regional markets.
Located in Uttar Pradesh, Shamli Steel has the capacity to produce about 2.5 lakh tonne of thermo mechanically treated bars (TMT bars), corrosion resistant steel bars, rounds and billets.