US-based Nithia Capital acquires steel maker CREST for Rs 600 crore

US-based advisory and investment firm Nithia Capital on Tuesday announced the acquisition of Crest Steel and Power Pvt Ltd (CREST) in Chhattisgarh for Rs 600 crore through an insolvency proceeding.

This acquisition has been completed under an insolvency process in partnership with Amalgam Steel Private Limited (ASPL), Nithia Capital said in a statement.

"Nithia Capital (Nithia) completes acquisition of CREST in partnership with Amalgam Steel Private Limited with Nithia retaining majority control of the partnership," the statement said.

CREST is an integrated plant with a sponge iron capacity of 225 kilo tonne per annum (KTPA). The plant has over 400 acre land, providing "extensive room" for brownfield expansion with a private railway siding, Nithia said.

Jai Saraf, founder and CEO of Nithia Capital, said, "The acquisition is an important and strategic step for Nithia and our second steel investment in India. With our newly forged partnership with Amalgam Steel, we believe CREST will soon achieve a successful turnaround, and is well set on its planned growth programme. This transaction is further proof of the success of the Insolvency and Bankruptcy Code (IBC).