Board of Directors approve merger of BSE & NSE-listed Rainbow Papers Limited with Kushal Tradelink Limited, 4th paper manufacturing unit in less than 2 years
The Written down Value of Rainbow Papers Limited at ₹ 1295.33 Crores
Ahmedabad, September 19, 2017: The Board of Directors of Kushal Tradelink Limited (KTL) approved Q1FY18 results and reported a 16.32% rise in its consolidated and unaudited net Profit After tax (PAT) to ₹ 26.10 crore for Q1FY18 as compared to ₹ 22.44 crore in Q1FY17. Total sales for Q1FY18 has increased by 100.29% to ₹ 832.73 crore as compare to Q1FY17 which stood at₹ 415.75 crore.
The highlight of the Quarter result is Composite Scheme of Compromise and Arrangement between BSE & NSE-listed Rainbow Papers Limited and its Secured and Unsecured Creditors and Amalgamation of Rainbow Papers Limited with Kushal Trade link Limited. The Written down Value of the Fixed Assets (including Capital WIP) of Rainbow papers as of 31st March, 2017 stood at ₹ 1295.33 Crores.
Rainbow Papers Limited was originally incorporated on 4th July, 1986 under Companies Act, 1956 as Rainbow Pigment Private Limited with a registered office in Ahmedabad, Gujarat. Subsequently the name of the Company was changed from Rainbow Pigment Private Limited to Rainbow Papers Private Limited. Later the company was converted to a public limited company.
Listed on NSE & BSE, Rainbow Papers is India’s one of the top recycled paper manufacturing company with a plant situated in 25 kms radius of India’s vibrant city Ahmedabad. The plant is spread across approximately of 55 Lakh Square Feet with a construction area of approximately of around 20 Lakh Square feet and has a total manufacturing capacity of 36 crore Kgs per Annum. It has a Coal based Power Plant of the capacity of 50 Megawatt (MW) for captive consumption. There are 11 paper mills installed in its Plant capable of producing various kinds of paper viz writing, printing, newsprint, duplex, Kraft, coated, copier, speciality grade etc.
One Time Settlement /Arrangement with the Secured Creditors/ Joint Lender’s Forum Members of the Rainbow Papers Limited at ₹ 535 crores against their total Outstanding Amount of ₹ 1152.43 crores + Unapplied Interest. The Mode of Payment for the One Time Settlement /Arrangement is as under:
|
Sr.no |
Particulars |
₹ in Crores |
|
1. |
Allotment of Equity shares of Kushal Tradelink Limited |
200 |
|
2. |
Issue of Share Warrants of Kushal Tradelink Limited) |
60 |
|
3. |
Cash Payment by Kushal Tradelink Limited via its Internal Accruals and accumulated profits |
275 |
|
Total |
535 |
|
The above Arrangement / OTS has been agreed upon by requisite majority of Joint Lender’s Forum for Rainbow Papers Limited and initial payment towards the above arrangement has also been made by Kushal Tradelink Ltd to the said Joint Lender’s Forum.
11 secured Creditors/ Joint Lender’s Forum Members of the Rainbow Papers Limited, namely, Indian Overseas Bank, Corporation Bank, Union Bank of India, Axis Bank, Allahabad Bank, Bank of India, Punjab National Bank, Dena Bank, IFCI Limited, Tourism Finance Corporation of India Ltd., and Assets Care & Reconstruction Enterprise Ltd. have signed up the agreement.
Share Exchange Ratio for the Amalgamation of Rainbow Papers Limited (RPL) with Kushal TradeLink (KTL) is Issue of ONE (1) Equity Share of ₹. 2.00 Each of Kushal Tradelink Limited for every Seventy Six (76) Equity Share of ₹ 2.00 Each of Rainbow Papers Limited as on record date. Unsecured creditors have also signed up the agreement, paving the way for merger.
Talking about the company’s outstanding performance, Mr Sandeep Agrawal, Chairman and Managing Director, Kushal Tradelink said, “This is yet another strong quarter for the company and it reinforces our business strategy that we have adopted in the last couple of years. With Rainbow papers in our portfolio, we believe the company is marching from strength to strength.”
Kushal Trade link Limited has strong roots with operations in India, Dubai and Singapore, and trading in Paper, Agri Products, Active Pharma Ingredients, Chemicals, Plastics, Textile & Readymade Garments, Electronics & Accessories, Metals & Minerals and Capital Goods.
For more information please visit www.kushaltradelink.com
Corporate Comm India(CCI Newswire)
