State Bank of India (SBI) and its subsidiaries are taking control of troubled steel maker Rohit Ferro-Tech, with the banking group getting issued 29% stake in the equity.

 

The lenders, including others like United Bank of India and Allahabad Bank, would collectively control more than 51% stake in the one of the largest ferro alloys makers having coal mine in Indonesia.

 

In the expanded equity base of the Kolkata-based Rohit Ferro-Tech, which had earlier gone for debt restructuring, SBI alone will have 18.42% stake.

 

And along with State Bank of Hyderabad's 5.33% and State Bank of Travancore's 5.06%, State Bank as a group will control 28.81%, shareholders' document showed.

 

Among the lenders, United Bank of India would be the second largest shareholder with 10.30% followed by Punjab National Bank (5.05%), Bank of Baroda (3.87%), Allahabad Bank (3.49%), Exim Bank (2.37%), UCO Bank (1.39%), Andhra Bank (1.25%).

 

Central Bank and Canara Bank are also being issued some shares in proportion to their minor loan exposure.

 

Additionally, new shares are also being issued to promoters following which post issue shareholding of promoters would be 37.59% while banks and FIs would control the company with 54.67% stake.

 

"In terms of the Strategic Debt Restructuring package by and between the company and the lenders of the company, which has been approved by the joint lending forum (JLF) and communicated to the company by SBI, the leader of the JLF vide its letter dated March 15, 2016, consent of the company be and is hereby accorded to the board to offer, issue and allot to the following allottees in one or more tranches not more than seven crores 28 lakh shares at a price of Rs 10 per share determined in accordance with Sebi (Issue of Capital and Disclosure Requirements) Regulations is being issued," said shareholders' document.

 

Rohit Ferro-Tech is among India's largest maker of ferro alloys chromium and manganese-based ferro alloys.

 

The company has three manufacturing facilities located at Bishnupur and Haldia in West Bengal and Jajpur in Odisha.

 

It had acquired 60% equity stake in a coking coal mine in Indonesia and 60% economic interest in a thermal coal mine there.

 

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