Cosmic CRF Ltd Wins Resolution for Amzen Transportation Industries; Announces Acquisition Plan
Cosmic CRF Ltd has been declared the 'Successful Resolution Applicant' by the Committee of Creditors (CoC) in the Corporate Insolvency Resolution Process (CIRP) of M/s Amzen Transportation Industries Private Limited. The successful outcome led to a Letter of Intent (LOI) from the Resolution Professional (RP) for the acquisition of M/s Amzen Transportation Industries Private Limited.The approval by the CoC confirms Cosmic CRF Ltd's role in acquiring the company, subject to final approval by the Hon'ble National Company Law Tribunal (NCLT).
Strategic Significance and Acquisition Details
The acquisition is strategically important for Cosmic CRF Ltd, as it will allow the Group to establish a manufacturing presence in Western or Northern India. This move is intended to strengthen its pan-India manufacturing footprint of complete Railway Wagons and enhance the operational capabilities of the company and its group.The target entity, Amzen Transportation Industries Private Limited (formerly known as M/s Amtek Railcar Industries Private Limited), operates within the Railway Wagon Manufacturing Industry, which is focused on Iron & Steel Products. Cosmic CRF Ltd confirmed that the proposed acquisition does not constitute a related party transaction, and none of the promoters or their group entities have an interest in the proposed transaction.
Transaction Structure and Timeline
The consideration for the resolution plan involves a multi-faceted approach committed by the Successful Resolution Applicant. The total Resolution Amount is set at 2284.00 Crores. The payment options provided are:1. Discharging the total Resolution Amount of 2284.00 Crores to all stakeholders over a period of 12 months from the date of approval by the Hon'ble NCLT.
2. Paying the Net Present Value (NPV) of 266.5703 Crores within 90 days from the date of resolution plan approval by the Hon'ble NCLT.
Upon receiving approval from the Hon'ble NCLT, Cosmic CRF Ltd and its Group Companies/Promoters are set to acquire a 100% shareholding in Amzen Transportation Industries Private Limited. The indicative timeline for completing the acquisition is set at 12 months from the date of payment of consideration.
Target Entity Profile
Key details regarding M/s Amzen Transportation Industries Private Limited, the acquired entity, are summarized below:| Particular | Details |
|---|---|
| Target Industry | Railway Wagon Manufacturing (based on Iron & Steel Products) |
| Registration Status | Unlisted Company |
| Incorporation Date | 07/07/2008 |
| Registered Office Location | Lat 3, LSC. Pamposh Enclave, Greater Kailash Part-I, New Delhi - 110048 |
| Manufacturing Facility | Located at Village Phatak Majri, P.O. Sadhugarh, Fatehgarh Sahib, Punjab |
| Paid Up Share Capital | Rs. 48.53 Crores |
| FY23-24 Turnover | 0.11 Crores |
Stock Price Movement
Cosmic CRF Ltd shares closed on Thursday at ₹1361.00, posting a notable gain of 2.56%. The stock moved throughout the session, fluctuating between an intraday low of ₹1310.00 and a peak high of ₹1393.40.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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