of Simhadri Power Ltd with Steel Exchange India Limited
Hyderabad, January 19th , 2015: Steel Exchange India Limited (SEIL) (BSE: 534748) has received the approval from the Honourable High Court of Judicature at Hyderabad for the state of Telangana and for the state of Andhra Pradesh for amalgamation of Simhadri Power Ltd with the company in December 2014. The effective date of merger is 1st April 2013.
Simhadri Power Limited (SPL) a Vizag based company has a coal based power plant generating 60 MW of power of which 34 MW is used for captive purpose and the remaining is sold to the Andhra Pradesh Grid. The power plant utilizes waste heat from the kilns of sponge iron unit of SEIL generating about 16 MW of power from flue gases. Besides this, the power plant also utilizes the coal fines generated by SEIL. The power plant paves the way for optimum use of the resources thereby bringing down the cost of production substantially.
The amalgamation will not only help SEIL to compete better in the market with uninterrupted supply of power to its existing units but also provide reliable power to its expansion plans which will also enhance the scale of operations and thereby providing significant impetus to the growth of both the companies.
Commenting on the occasion, Mr. B. Satish Kumar – Managing Director, Steel Exchange India Limited said, “This amalgamation will result in improved shareholder value by way of improved financial structure, cash flows, increased asset base, consolidated revenues and profitability. The amalgamation will also result in overall increase of our net worth. The asset base of the company will also increase substantially from Rs.324 crores to Rs.649 crores.”