A clarification is required here…
Cosmic EV is not a subsidiary of Cosmic CRF.
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Yes you are rightly said.
Is there any update on NCLT approval on AMZEN takeover?
If CosmicCRF got the approval what will be the total opportunity size that cosmicCRF will have and what can be expected from Cosmic from it in the upcoming years.
I know it’s wild guess 
as there is nothing to analyse in terms of cosmic.
With thanks
NCLT Verdict summary:
Key Issues:
Cosmic CRF Limited (Applicant) challenged their disqualification as a Resolution Applicant and the forfeiture of their ₹1.50 crore earnest money deposit.
Myotic’s Current Status:
Highest bidder with:
Final bid: INR 272.15 Crores
NPV: INR 255.28 Crores
Part of consortium with Fortune Global Solutions Limited
Unconditionally accepted Challenge Mechanism Framework
Raised concerns about Cosmic’s eligibility.
Main Developments:
- Energy Watchdog (NGO) raised allegations about Applicant’s (CosmicCRF) ineligibility under Section 29A
- Two agencies (AHSK & Co. and Priyanka Sharma & Associates) submitted reports declaring the Applicant ineligible Committee of Creditors (CoC) declared Applicant ineligible under Sections 29A(a), (c), (h), and (j)
Court’s Decision:
Partly allowed the application
Found violation of natural justice principles as the Applicant wasn’t given opportunity to respond to new grounds of ineligibility
Directed:
Resolution Professional and CoC to give Applicant fair opportunity to respond Matter remanded to CoC for reconsideration Applicant to be allowed to present justification regarding eligibility criteria
The court emphasized the importance of following proper procedures and maintaining natural justice principles in the insolvency resolution process.
Procedural Challenges:
Limited time to respond to multiple allegations Need to address findings from two professional agencies Complex multi-layered verification process Multiple grounds of ineligibility to contest Navigating CoC’s decision-making process
Legal Challenges:
Proving eligibility under four sections of 29A:
Section 29A(a)
Section 29A(c)
Section 29A(h)
Section 29A(j)
Addressing all legal aspects simultaneously Meeting burden of proof requirements
Immediate Actions:
Prepare comprehensive response to reports dated 18.10.2024 Gather all supporting documentation Request formal hearing before CoC Maintain EMD status and rights
Engage with Resolution Professional for process clarity
Legal Strategy:
Utilize court’s favorable order on natural justice
Focus on addressing all four sections (29A a, c, h, j)
Present structured defense against each allegation
Maintain rights in Swiss Challenge Mechanism
Keep legal options open for future recourse
Documentation Preparation:
Compile corporate structure evidence
Gather ownership and control documentation
Prepare management credentials
Collect financial records
Organize compliance certificates
Address concerns of all committee members:
UCO Bank (53.31% voting share)
Prudent ARC Limited (41.12%)
WLD Investments (5.57%)
Process Participation:
Continue participation in resolution process Maintain eligibility for Swiss Challenge Mechanism Keep the bid position active
Follow procedural requirements
Meet all compliance needs
Counter-Strategy:
- Address Energy Watchdog allegations
- Challenge negative agency reports
- Provide counter-evidence
- Demonstrate clear eligibility
- Maintain competitive position against Myotic Trading
My conclusion:
- This verdict is allowing to give representing chance to CosmicCRF before CoC (as CoC disqualified CosmicCRF)
- Initially i expected that this verdict is giving chance to takeover the Amzen. In fact such orders are reserved for Myotic (they submitted a bid for Rs.277cr).
- CosmicCRF has to prove the allegations made on them are wrong.
- It’s a very long story but the chances of winning looks limited to cosmic as this is already in favor of Myotic.
Disc: Had holding
With thanks
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Chronological timeline of Cosmic CRF’s involvement:
April 20, 2024
◆Form G published inviting EOIs
◆Public announcement made in multiple newspapers
May 6, 2024
●Cosmic submitted EOI
◆Deposited initial EMD of ₹25 lakhs
◆Submitted undertaking affirming Section 29A eligibility
May 10, 2024
Included in Provisional List of PRAs
Documents under review status
May 20, 2024
Included in Final List of PRAs RFRP issued by RP
June 21, 2024
Submitted Section 29A Affidavit
June 28, 2024
◆Submitted Resolution Plan ◆Deposited additional EMD of ₹1.50 crores
August 22, 2024
◆Participated in Swiss Challenge ◆Mechanism Completed three rounds
August 27, 2024
◆Energy Watchdog letter alleging ineligibility received
August 31, 2024
RP shared Energy Watchdog’s letter with Cosmic
September 2, 2024
Cosmic responded denying allegations Provided additional information to AHSK
September 11 & 17, 2024
Provided further information to AHSK
September 20, 2024
AHSK report declaring ineligibility under Section 29A(c)
September 27, 2024
Show Cause Notice issued to Cosmic
Limited to Section 29A(c) violations
September 30, 2024
Cosmic submitted reply to Show Cause Notice Denied all allegations
October 18, 2024
Two reports submitted:
◆AHSK final report
◆Priyanka Sharma & Associates report
Both declaring Cosmic ineligible under multiple sections
October 19, 2024
CoC declared Cosmic ineligible
EMD forfeiture decided
November 4, 2024
RP informed Cosmic of ineligibility decision
November 5, 2024
Cosmic indicated intention to seek legal protection
January 9, 2025 (Current Order Date)
Court partially allowed Cosmic’s application
Directed CoC to:
◆Provide fair hearing opportunity
◆Consider Cosmic’s response to reports
◆Review eligibility afresh
With thanks
Disc: Had holdings
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Response from Raft Cosmic EV
Recently, a former associate has made baseless and malicious allegations against our company on social media platforms, including LinkedIn. These claims, which include accusations of forged signatures and unauthorized share transfers, are completely false and without merit.
We want to address these allegations directly and transparently:
We have numerous questions that would uncover the truth, but for now, we urge the accuser to respond to just these three:
- If you genuinely believe your signature was forged, why haven’t you approached the courts to seek justice?
- If you suspect fraudulent activity, why haven’t you filed a formal complaint with the Registrar of Companies (ROC) or other relevant authorities?
- Why are you directing your grievances towards Raft Cosmic EV, which has no role in this matter, instead of addressing your concerns to the individual who purchased your shares?
It is important to highlight the following:
The accuser was removed from our board for reasons that are publicly available and legally documented.
Public records also reveal multiple court summons against this individual for financial irregularities, including non-payment to creditors and check-bouncing cases.
We find it perplexing that someone who claims to uphold the truth has ignored these summons, failed to appear in court, and instead resorted to spreading false claims on social media about our Chairman, Aditya Vikram Birla.
We stand for Truth and Integrity
At Raft Cosmic EV, we uphold the highest standards of transparency, integrity, and professionalism. While we remain focused on building a sustainable future for mobility, we will not tolerate attempts to tarnish our reputation with baseless allegations.
If the accuser has genuine concerns, we strongly urge them to address these with the relevant parties or authorities, rather than baselessly posting on social media and misdirecting the masses.
False narratives create unnecessary noise and confusion. We stand united in our commitment to truth and fairness and thank our stakeholders, partners, and the community for their unwavering support.
Let’s not allow rumors to derail the good work being done for the future of electric mobility and affect the great start up momentum that India is thriving on!!
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Yes it seems like a “intentional wrong propaganda” by founder of RAFT Motors.
- Why he is not approaching the court for justice.
- Why he is not going to relevant authorities.
- Why he is not making any civil complaint
So many doubt are coming on founder of Raft Motors.
Cosmic birla group planning to expand their wings but these persons are trying to drag cosmic groups reputation.
With thanks
Be and Make
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Possible funding options for cosmicCRF to acquire Amzen transportation.
Cash Reserves: The company has maintained approximately 140 crores in cash reserves, specifically set aside to be ready for acquisition opportunities. This allows for immediate availability of funds when needed.
Debt Facilities: The company has taken on debt, not out of necessity, but to maintain strong relationships with financial institutions. This strategic move ensures that additional funds can be accessed quickly if required.
Banking Relationships: The company has established strong relationships with its bankers, who have already provided a loan of around 50 crores. These relationships are crucial for securing further financial support if needed.
Operational Flexibility: By having both cash reserves and debt facilities, the company maintains operational flexibility, allowing it to respond promptly to acquisition opportunities without delays.
Management is going in a right direction, patience is needed to complete the Acquisition process!
(Source: Recent concal)
With thanks
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Aditya Vikram Birla of #CosmicCRF, has been featured in the prestigious “Greatest Leaders Asia-Americas-Africa 2024” magazine by AsiaOne.
Recognized under the esteemed section of “Most Influential Young Leaders 2024”, this honor acknowledges Aditya’s leadership, strategic vision, and commitment to driving growth and innovation within Cosmic Birla Group.
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Very innovative, dynamic, visionary Aditya Vikram birla, congratulations…
With thanks
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Has anyone joined Arihant capital Bharat connect conference of Cosmic CRF?
If so could you please list down the updates or main points over here. Would be very helpful.
What are the possible options for Cosmic CRF to become an Integrated wagon Manufacturer?
Plan A: Acquire Amzen via NCLT
Goal: Acquire Amzen, which is already an integrated wagon builder.
Why?: Amzen brings an established plant layout, accreditations/ approvals (RDSO), and potential export capabilities.
Expected Timeline: Acquisition by March 2025
Partial production starts within 3 months post-takeover
Full production within 9 months after refurbishment
Plan B: Greenfield Wagon Unit
Location Identified: Railway siding land parcel in West Bengal
Readiness: Land already being evaluated and invested in
Timeline: Would take ~24 months to set up from scratch
Business model is already de-risked due to component supply from group companies
Plan C: Phased Integration via Group Ecosystem
Even without Amzen, Cosmic can:
Ramp up in-house fabrication, which is already at a world-class level
Leverage Cosmic CRF + N.S. Engineering + upcoming Cosmic Springs to supply 80–90% of a wagon’s BoM
Start with supplying full assemblies or sub-units to other wagon builders
(Source: Recent concal)
My observations:
- Management of Cosmic CRF is aiming for big.
- Cosmic CRF is going to become an integrated wagon manufacturer.
- Management of Cosmic CRF want to acquire Amzen through NCLT (verdict is likely to come very soon) or they are planning to start a new factory for producing the complete wagon manufacturer.
- I think in future even after acquiring the Amzen they will start this new factory to become larger wagon manufacturer.
- Management headed by Aditya Vikram Birla (he is a passionate person and aiming to become an most successful entrepreneur) having aggression for growth is really a adorable quality which every equity investor loves.
Hope he may achieve all his dreams and bring good contribution to his investors, state and our country’s growth.
With thanks
Be and Make
Disc: Had holdings
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