JM Financial Acts as Exclusive Financial Advisor to Acquisition of Monnet by Aion-JSW Steel

The consortium of Aion-JSW Steel has successfully completed the acquisition of Monnet Ispat & Energy under the IBC process. Monnet has a 1.5mtpa steel plant in Chhattisgarh. Monnet owed ~Rs 11,000 crore to a clutch of lenders.

JM Financial was the financial advisor to the buyer consortium and played a key role in structuring and executing the transaction. This transaction represents one of the fastest resolution cases under IBC. At a value of ~Rs 2,900 Cr this transaction also represents one of the few large sized transactions that have successfully closed under IBC.

The deal structure involves a unique win-win formulation between the consortium partners (in terms of operational control) as also vis-a-vis lenders in terms of equity upside while ensuring significant tax benefits.

The transaction is a yet another testimony to JM Financial’s ability to execute complicated transactions involving multiple stake holders in a time bound manner.

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