IMAP India advised Indian Steel Corporation in its strategic stake sale to AM / NS India

Indian Steel Corporation Limited has found a safe and sustainable solution for its business with completion of its acquisition by an integrated large steel company. IMAP India has been associated with the company to help achieve this solution through a process which has been executed in multiple and sequential steps over the past five years. Our team has worked closely with management in this period, first by resolving financial liabilities and roping in India Resurgence Fund by way of assignment of debt from the bank and then followed it up with a comprehensive business resurrection by roping in contractual relationship with Arcelor Mittal Nippon Steel. As a result of these initiatives, a sustainable solution for all the stakeholders, including its employees and customers, has been achieved. It has been a case study solution for our team and we continue to use our learnings from this case to our other assignments.

Indian Steel Corporation (ISC) is a flat steel downstream processing project located near to a major port in western part of India. This project was established in 2006 as a joint venture by an Indian Industrial group with Mitsui of Japan, with background that primary steel (HRC) will be sourced from steel mills in Japan and then processed in India to serve the processed flat products requirement of appliances, auto and roofing industry. The project was well conceived, and it had a good run from 2006-10.

In 2010, Company expanded three fold its capacity and funded it to a large extent by the debt. Post 2012, Inverted duty curve resulting dumping by China and Vietnam hurt margins and company got into financial stress. In 2015, Government of India intervened with duty structure, but damage was done till then. 2017 saw lot of technology changes in the industry which supported integrated steel players and further took a hit on the company’s financial health. In 2019, IMAP India approached the company with possible comprehensive solution.

In 2019, IMAP India advised the company in its financial restructuring. IMAP India helped in settlement and its financing with company’s lending banks so as to reach a capital structure which allowed equity value creation : $250 mn debt was settled for $80 mn. Further in 2021, inorder to resurrect the plant utilization and customer win, IMAP India helped in with Working capital financing solution. In 2023, when the financial health of the company improved, IMAP India helped ISC in its strategic stake sale to Arcelor Mittal Nippon Steel India for $120mn.

“It is said that once you get a good consultant, your life is made. Like Arjuna got (Lord) Krishana in Mahabharata, Indian Steel got IMAP. All through the process, they have been guiding us; they have been a counsellor to us and it was because of their efforts we could save the likelihood of more than four thousand families”

Mr. Arjun Zalani, Ex –Director – Indian Steel Corporation

Here is what Mr. Arjun Zalani, Ex –Director – Indian Steel Corporation had to say about IMAP India: