Strategic buyout to revive non-operational cable plants aligns with Vedanta’s downstream copper-aluminium expansion plans.
NCLT Approval Sparks Market Optimism
Vedanta’s stock hit a new 52-week high of ₹541.25, following the National Company Law Tribunal’s (NCLT) approval of its ₹545 crore resolution plan to acquire Incab Industries Limited. Shares rose 1.5% to ₹540.80 as of 9:42 AM, reflecting investor confidence in the strategic move.
The acquisition was approved under the Insolvency and Bankruptcy Code (IBC) and is expected to be completed within 90 days, backed by internal accruals.
Incab Industries: A Dormant Asset with Strategic Value
Incab Industries, once a key player in power cable and industrial wire manufacturing, has been non-operational since entering insolvency in 2019. It owns:
- Two manufacturing facilities in Jamshedpur and Pune
- A product portfolio including power cables, fibre optic cables, winding wires, and rod mills
- Expertise in using copper and aluminium, which aligns with Vedanta’s core operations
The Pune plant’s proximity (300 km) to Vedanta’s Silvassa copper unit offers logistical advantages and potential cost synergies.
Synergies with Vedanta’s Core Business
Vedanta sees the acquisition as a strategic vertical integration move, particularly beneficial for its copper and aluminium business segments. The deal is expected to:
- Strengthen downstream operations
- Support expansion in the infrastructure and power transmission sectors
- Revive non-operational plants with new capital expenditure and working capital infusion
Importantly, Vedanta clarified that this is not a related-party transaction, and no promoter group entities have any stake in Incab.
Background of the Acquisition Process
Incab Industries was admitted into insolvency on August 7, 2019, and Vedanta’s resolution plan was approved by creditors in June 2022. With the NCLT Kolkata’s final nod, Vedanta will now gain 100% ownership and full management control of Incab.
This adds another milestone to Vedanta’s ongoing efforts to diversify and vertically expand its manufacturing capabilities in energy and industrial segments.
Vedanta’s ₹545 crore acquisition of Incab Industries, approved by NCLT Kolkata, pushed its shares to a 52-week high. The buyout will enable Vedanta to revive Incab’s dormant cable plants and deepen its copper and aluminium downstream operations, strengthening its infrastructure and power transmission verticals.
