ICICI Bank Ltd decided to file an application in the National Company Law Tribunal against Innoventive Industries Ltd in order to start a corporate insolvency process that covers the new bankruptcy law.
It has been said that this was the first case filed in India under the Insolvency and Bankruptcy Code, 2016, in which a primer will be provided to help discuss the banking system’s bad loans worth Rs 6.7 trillion.
However, the steel product maker Pune-based, which had Rs955 crore debt at the end of September, has contested the petition, citing it is not in default as the industries, along with the law and labor departments of the Maharashtra government had advised a suspension of the firm’s liabilities from 22 July 2016 to 21 July 2017.
“Therefore, none can proceed against the company showing as the company defaulted paying debts,” said an interim order on the tribunal’s website on Thursday.
Hence, the ICICI Bank was questioned to respond on whether its application has conformed with the bankruptcy law on Friday. However, the website of the tribunal had no comments of that day’s hearing at the time of going to press on Sunday.
“We cannot comment on this case as it is sub judice,” said a spokesperson for ICICI Bank. Chandu L. Chavan, chairman and managing director of Innoventive Industries, did not respond, while an email sent to the company’s official address remained unanswered.
Trading Calls: Sell ICICI Bank
Indian equity markets had once again remained disappointed on Monday after a brief recovery on Friday, fueled by selling pressure on pharmaceuticals and metal shares. Meanwhile, the Sensex declined almost 300 basis points, while the broader Nifty index broke 7,900 on the downside.
ICICI Venture Raises Real Estate Fund
ICICI Venture, the largest domestic private equity (PE) firm, is considering to raise a new real estate fund in almost over five years, according to a source.
The fund manager had recently gotten an approval from the Securities and Exchange Board of India (Sebi) and is set to start marketing the fund in the next couple of months, sources said.
Additionally, the total corpus of the domestic fund is expected to be Rs 500 crore and would mostly be invested in residential real estate projects.
As shares of ICICI Bank are currently in a consolidating tone, market participants are recommended to still wait on the sidelines. However, experts suggest to Sell the stock as it is anticipated to show disappointments.
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