Posted on 24 Aug 2015
Visa Steel Ltd said that it has amalgamated its joint venture Visa Bao Steel Ltd with itself.
Chinese steel major Bao Steel had a 35 per cent stake in the joint venture. After the merger, Bao Steel will have five per cent stake in Visa Steel.
The merger will integrate ferrochrome manufacturing business of Visa Steel with that of Visa Bao, both located at Kalinganar in Odisha.
According to Vishal Agarwal, Chairman and Managing Director of Visa Steel, “the amalgamation will make Visa Steel one of the largest ferrochrome producers in India”.
The merger would bring two furnaces of Visa Bao into Visa Steel’s fold. Visa Steel already has four furnaces. The combined capacity of ferrochrome production of six furnaces is 1.8 lakh tonnes a year.
As part of a business re-organisation plan, Visa Steel is also transferring its 0.5-million-tonne-a-year special steel plant to its subsidiary Visa Special Steel Ltd. This move is primarily to invite strategic investor to its special steel business, which caters to the automobile industry.
According to sources, Visa Steel is in talks with a few overseas majors for strategic investment partnership in its special steel business.
Extension of time
The Registrar of Companies, Odisha has granted extension of three months
for holding the Annual General Meeting of Visa Steel for the financial
year ended March 31, 2015. The company had sought extension of time to
give effect to the scheme of arrangement between Visa Steel and Visa
Special Steel. The scheme is now pending before the High Court of
Judicature of Orissa at Cuttack for approval.
In 2014-15, Visa Steel reported a net loss of ₹241.44 crore and ₹119.35 crore in Q1 of 2015-16.
