Videocon resolution plan: Under this resolution plan, 12 companies of Videocon Group will be merged and the new company will be owned by Vedanta Group as well as banks will get 8 percent stake.
Banks will get 8 per cent stake.
Videocon resolution plan: Financial institutions supporting Videocon’s resolution plan will get an 8 per cent stake in the new company. Actually, under this resolution plan, a new company will be formed by merging 12 companies of Videocon Group. This new company will be owned by Vedanta Group.
Videocon’s telecom company Videocon Telecommunications will also be a subsidiary company of the new entity. The merger of 12 companies of Videocon Group of Companies is part of the resolution plan. Under this plan, the shares of Vedanta Industries Limited and Value Industries will be segregated and their shares will be de-listed. This process has already started. At present, trading is closed in the companies of Videocon Group.
Vedanta’s big plan in electronics
According to the report of Times of India, Vedanta Limited has a big plan for the electronics industry. In such a situation, financial creditors expect that the future of the new company will be better when Videocon Group of Companies is merged into a single entity and Vedanta Group will take over. Banks will have 8 percent stake in this new company itself.
These 11 companies will merge with Videocon
Applicomp CE manufactures home appliances among the 11 companies that will be merged into Videocon. This company produces products like refrigerators, mobile phones, LED TVs. Other companies include Evans Fraser, Millennium Appliances, Electro World Digital Solutions, Techno Kart India, Century Appliances, Techno Electronics, Value Industries, PE Electronics, CE India and Sky Appliances. Let us tell you that many banks including SBI, IDBI Bank, Union Bank have given loans to Videocon Industries Limited.
Videocon acquired through Twin Star
Vedanta is going to acquire Videocon Group of Companies with the help of Twin Star Technology. In 2016, Twin Star had told the government that it wanted to set up a display fabrication unit in the country by investing $10 billion. After that the matter was put in cold storage. After the acquisition of Videocon, once again the fragrance of the display unit has intensified. For this, Twin Star has partnered with LG Electronics of South Korea.
Government’s big plan regarding display market
The Ministry of Electronics and IT has also sought expression of interest from companies setting up display units. The government is also considering giving incentives to make India a hub of display units. The cost of display in smartphone is about 25 percent and in TV 50 percent of the cost of display. Presently the display market of the country is around $7 billion and it is expected to reach $15 billion by 2025.
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