JOURNEY OF REWANT RUIA FROM 100% TO 0% IN NUMETAL
The National Company LawAppellate Tribunal (NCLAT) has put the resolution process of Essar Steel on hold. The NCLAT will now hear ArcelorMittal and Numetal, the two contenders in the first round of bidding, on July 23. Numetal, incorporated in October last year to bid for Essar Steel thatwas undergoing insolvency, has metamorphosised way too fast in the past sixmonths to suit the bidding eligibility criteria. At the time of incorporation, Rewant Ruia, son of Essar Steel-promoter Ravi Ruia, held 100 per cent in Numetal. He divested five times in a span of sixmonths. However, as of ThursdayRewant owns no stake in the bidding company
OCTOBER 13, 2017
Numetal, Aurora (AEL) and Aurora Holdings (AHL) all three entities were incorporated AEL held 100% shareholding of Numetal AHL held 100% shareholding of AEL Rewant Ruia held 100% shareholding of AHL INFERENCE: Rewant Ruia held entire 100% of Numetal at the time of incorporation
OCTOBER 18, 2017
AEL transferred 26.1% equity to Essar Communications Ltd
OCTOBER 20, 2017
Numetal submitted EOI AEL held 73.9% shareholding of Numetal ECL held 26.1% shareholding of Numetal
NOVEMBER 22, 2017
ECL transferred 26.1% equity to Crinium AEL transferred 25.1% equity to Indo International AEL transferred 9.9% equity to TPE AEL transferred 13.9% equity to Crinium Thus, Crinium Bay held 40% (26.1% from ECL + 13.9% from AEL) shareholding of Numetal INFERENCE: AEL held 25% shareholding of Numetal on 22 November, 2017
FEBRUARY 12, 2018
Numetal submitted resolution plan
ON/BEFORE MARCH 29, 2018
AEL divested remaining 25% of Numetal Crinium held 49% shareholding of Numetal Exact shareholding of Indo International, JSW Steel, Technopromexport (TPE) not known
APRIL 2, 2018
(deadline for second bidding round) AEL divested entire 100% shareholding. Rewant Ruia not part of Numetal consortium INFERENCE: Numetal completely new entity from the time of incorporation
WHY DID REWANT EXIT?
Numetal was rejected in the first-round bidding as it was not compliant with Section 29A of IBC. Numetal was asked to clear the dues of Essar Steel. For Numetal, Rewant’s participation also gave rise to the impression that the consortium was a proxy for Ruias
CURRENT SHAREHOLDERS OF NUMETAL:
Crinium Bay, an arm of Russia-based VTB Bank Technopromexport, a Russian company JSW Steel, a primary steel producer in the domestic market UAE-based Indo International Trading FZCO