Jupiter Wagons Limited (JWL) has emerged as the successful resolution applicant for Duncan Goenka group firm Stone India.

The company, a supplier of braking systems and engineering products for Indian Railways, was placed under the corporate insolvency resolution process.

JWL was announced as the successful resolution applicant unanimously by the committee of creditors of Stone India Limited following the conclusion of voting on October 13. The resolution plan will be placed before the National Company Law Tribunal for its approval.

Stone India’s financial creditors — according to data available on its website — include Indian Overseas Bank, State Bank of India and ICICI Bank with an admitted claim of around Rs 51.81 crore. After including the dues of the operational creditor, the total provisionally admitted amount was close to Rs 100 crore.

Sources said that around a 50 per cent haircut could be expected on the outstanding dues. There were two key deal drivers — the existing licences and a sizeable factory — which resulted in interest among at least three bidders for Stone India.

Strategic fit

Jupiter Wagons said that the company already has a wide ranging product portfolio and the addition of Stone India will strengthen its offerings for the railways, including braking systems and other engineering products.

With both entities engaged in the same line of activity, the acquisition of Stone India Limited shall provide natural synergy to the company.

“Stone India is a strong and strategic fit for Jupiter Wagons and the combination of the two companies will drive significant value. The acquisition will result in the enhancement of the overall portfolio strength,” said Vivek Lohia, managing director, Jupiter Wagons Limited.

“Our recent success of getting listed on bourses and now acquiring Stone India is a direct reflection of strategic business expansion. This acquisition will allow us to accelerate our development plans and enable us to excel in the offerings for the Indian Railways.”

JWL recently completed the reverse merger with CEBBCO (Commercial Engineers & Body Builders Company Ltd.) through an acquisition and got listed on the stock exchanges.