Heavy engineering and mining major Gainwell Group as a strategic investor will takeover the management control of the ailing TIL Ltd, a senior company official said on Saturday.
A fresh capital of Rs 69 crore will be infused by Gainwell group company, Indocrest Defence Solutions, in the first phase of this restructuring, the official said after the board meeting.
"Gainwell will take over management control and the existing promoters will eventually take an exit at a later date," TIL chairman & managing director, Sumit Mazumder said.
The company informed the bourses about increasing its authorised capital and issuing preference capital worth Rs 69.29 crore.
According to Sumit Mazumder, the decision was mainly influenced by the lack of a successor to carry on the business after me. This was coupled with the challenging times in the past few years.
"Bringing in a strategic investor became imperative in order to continue business operations," he said.
Back in 2016, TIL sold its Caterpillar dealership business to Gainwell.
TIL's pending order book as on 31st March 2022 stood at Rs 332.5 crore with large orders in the pipeline. Almost 65 per cent of orders pertain to the defence sector.
