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Diversified conglomerate Tata Group has shown interest in investing in Electrosteel Steels Ltd.
Besides a Singapore-based financial investor has also evinced interest in the firm, Electrosteel Steels said in a BSE filing today.
The firm has been under corporate debt restructuring scheme since 2013 with a debt of more than Rs 6,000 crore.
“...Electrosteel Steels has now informed BSE that the lenders/company has now received indicative term sheets for investment in the company from Tata Group as well as from a financial investor based in Singapore,” the filing added.
Reacting to the news, shares of the firm breached the upper circuit. The shares were trading higher by 11.42 per cent at Rs 4.20 apiece on BSE in the afternoon trade.
The filing further said: “The bankers...as well as the company are exploring the proposals of investment.”
In April, there were reports that Anil Aggarwal-led Vedanta is eyeing a minority stake in the debt-laden firm and there have been initial talks in this matter between Vedanta and Electosteel.
However, Electrosteel in a reply to stock exchanges denied “any action/discussion as contemplated in the media report with regard to sale of the company’’.
According to the firm’s Web site, Electrosteel Steels has a 2.5 million tonne per annum (MTPA) greenfield integrated steel plant near in Bokaro (Jharkhand).
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