Deep Industries Resolution Plan for Dolphin gets NCLT approval; Stock up 1%

8 Feb 2022 , 09:25 AM

The Committee of Creditors (COC) of Dolphin Offshore Enterprises (India) Ltd., a company undergoing insolvency resolution process under the Insolvency and Bankruptcy Code, has approved the Resolution Plan submitted by Deep Industries Limited through its wholly-owned subsidiary — Deep Onshore Services Private Limited.

The Resolution Professional appointed by the National Company Law Tribunal, Mumbai (NCLT) has issued a Letter of Intent dated February 7, 2022, to the company intimating about the approval of the Resolution Plan by COC.

Under the approved Resolution Plan, Deep Onshore will acquire the assets of Dolphin. Dolphin has been servicing the Offshore Oil and Gas Industry by providing diving, underwater engineering and allied services.

The proposed acquisition, if approved, would be a natural extension of Deep’s existing business of Oil and Gas Services. Deep Industries is a long term net debt free company and the proposed acquisition will be funded primarily through internal accruals, company said in a filing on Monday.

The closure of the transaction shall be subject to obtaining necessary approval from the Adjudicating Authority i.e. NCLT.

At around 9.26 am, Deep Industries Ltd was trading at Rs187 per share up Rs80 or 0.97% from its previous closing of Rs185.20 on the BSE.