Authum Investment Acquires 49.3% Stake in NITCO Limited Through Debt-to-Equity Conversion

Mumbai, India – January 28, 2025: Authum Investment & Infrastructure Limited (NSE: AIIL, BSE: 539177) has officially acquired 11.25 crore equity shares of NITCO Limited, amounting to a 49.3% stake. This acquisition was executed through a debt-to-equity conversion, making NITCO an associate company of Authum.

Key Highlights of the Acquisition:​

• Stake Acquired: 49.3% (11.25 crore shares).
• Acquisition Method: Conversion of unsustainable debt into equity.
• Debt Converted: ₹1,037.81 crore owed by NITCO to Authum.
• Business Impact: NITCO's debt restructuring plan aims to revive its operations and drive future growth.

Rationale Behind the Acquisition​

Authum Investment acquired 97% of NITCO's total debt from JM Financial Asset Reconstruction Company Limited in April 2024. The restructuring plan includes:

1. Debt restructuring to ease financial burden.
2. Expansion into real estate development and construction.
3. Issuance of fresh capital to support business revival.
4. Acquisition of additional real estate assets.

Authum's strategic move aims to maximize stakeholder value while ensuring NITCO's long-term sustainability and profitability.

Regulatory & Shareholder Approvals​

• NITCO shareholders approved the allotment at an EGM held on November 15, 2024.
• BSE and NSE granted in-principle approvals on January 15 & 16, 2025, respectively.

About NITCO Limited​

• Industry: Ceramic tiles, vitrified tiles, marble processing, and real estate development.
• Founded: July 25, 1966.
• Presence: India.
• Financial Performance:
  • FY 2023-24 Turnover: ₹327.83 crore.
  • FY 2022-23 Turnover: ₹386.17 crore.
  • FY 2021-22 Turnover: ₹416.12 crore.
  • Net Worth (as of March 31, 2024): ₹(-502.21) crore.

Management Commentary​

Amit Dangi, Whole-Time Director, Authum Investment, stated:
"This acquisition aligns with our strategic intent to revitalize NITCO, leveraging its market position and expanding into real estate. The debt restructuring will ensure operational efficiency and long-term profitability.".

Investor Takeaways & Market Outlook​

• Authum's acquisition provides NITCO with a crucial financial lifeline.
• Strategic shift towards real estate and construction aims to enhance revenue streams.
• Potential recovery in NITCO's stock performance post-restructuring.

Authum Investment's strategic stake acquisition in NITCO Limited marks a significant step in debt resolution and business revival.