The National Company Law Tribunal, Chennai Bench, approved the application filed by the liquidator confirming the sale of Servalakshmi Paper’s assets as a going concern, SPBL said in a regulatory filing. The NCLT order in favour of Seshasayee Paper and Boards was given on 12 May. It was uploaded on the NCLT’s website on 15 May.

According to statements submitted to SEBI, the successful bidder has deposited the entire amount of Rs 105-crore with the liquidator.

According to reports, Seshasayee intends to expand its production capacity by upgradating the plant and machinery of Servalakshmi Paper.

The operations of Servalakshmi Paper have been shut for the last six years.

Post-acquisition, the plant is expected to produce 75,000 tonnes of per per annum. The company expects the plan to go operational in the next 12 to 18 months. 

Recently, Seshasayee Paper and Boards approved to augment its paper capacity from 1,65,000 tonnes to 2,31,000 tonnes and pulp capacity from 1,80,000 tonnes to 2,52,000 tonnes.