This comes three months after Asset Care and Reconstruction Enterprise Ltd (ACRE), an asset reconstruction company, purchased NFCL’s debt from the lenders and issued a demand notice under the provisions of the SARFAESI Act
CR SUKUMAR AUGUST 15, 2023 / 10:20 PM IST
Board meeting
At a board meeting held on August 14, NFCL approved the proposal of AM Green Ammonia. (Representative Image)
Hyderabad-headquartered Nagarjuna Fertilizers and Chemicals Ltd (NFCL) on August 14 decided to sell its urea and micro-irrigation businesses to AM Green Ammonia (India) Pvt Ltd, a firm owned by one of India’s largest renewable energy players, Greenko Group, for Rs 1,700 crore on a slump sale basis.
This comes three months after Asset Care and Reconstruction Enterprise Ltd (ACRE), an asset reconstruction company, purchased the debt of the fertiliser company from the lenders and issued a demand notice to NFCL under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcemen of Security Interest (SARFAESI) Act.
At a board meeting held on August 14, NFCL approved the proposal of AM Green Ammonia, which includes Rs 1,365 crore in cash and a 19.7 percent equity stake in the purchaser’s company.
With a call option available to the purchaser on the 19.7 percent stake, the purchaser can exercise it within one year for Rs 335 crore with a premium of 12 percent a year, taking the total to Rs 1,700 crore. Of this, NFCL proposes to pay Rs 1,500 crore towards debt resolution under a one-time settlement.
