Companies

Tata Steel, JSW-Piramal JV bid for Bhushan Steel

PTI New Delhi | Updated on February 19, 2018 Published on February 19, 2018

Bhushan Steel, one of the 12 non-performing accounts referred by the Reserve Bank of India for National Company Law Tribunal (NCLT) proceedings, owes Rs 44,478 crore to its lenders. It makes auto-grade steel in India.

Debt-laden Bhushan Steel Ltd today said Tata Steel, JSW Living Pvt Ltd and a consortium of the company’s own employees have submitted bids to take over its assets.

The company in a filing to BSE said that as part of the resolution process, “the resolution professional (RP) has received resolution plans from Tata Steel, JSW Living Private Ltd and Employees of Bhushan Steel Ltd“.

JSW Living Pvt Ltd is a joint venture between JSW and Piramal Enterprises.

Bhushan Steel shares soared close to 20 per cent to hit upper circuit limit of Rs 53.85 on BSE. Trading volume spurted more than 1.37 times on BSE with over 27 lakh shares changing hands, exchange data showed.

The stock surged 19.91 per cent to Rs 53.90 on NSE as over 1.37 crore shares were traded on the platform.

A broad summary of the resolution plans were presented by the RP to the committee of creditors (CoC) in their meeting held on February 16, 2018, Bhushan Steel said.

The company further said that the RP and its advisors will now review the plans so as to ensure that these plans are in conformity with the provisions of the Insolvency and Bankruptcy Code, 2016, and additional requirements as stipulated by the CoC in the process document.

“Once the resolution plans are identified, another meeting of CoC will be convened to present the compliant plans for the consideration of the CoC,” Bhushan Steel said.

When asked about Tata Steel’s bid offer, its managing director and CEO TV Narendran said, “I would not comment on the numbers. Media report says we are the highest ... if media reports about other bids are right then probably we are the highest.” The company was interested in these assets right from the beginning because these are in the eastern region, he told reporters on the sidelines of an event organised by CII here.

Bhushan Steel, one of the 12 non-performing accounts referred by the Reserve Bank of India for National Company Law Tribunal (NCLT) proceedings, owes Rs 44,478 crore to its lenders. It makes auto-grade steel in India.

According to the Bhushan Steel’s website, it is the third largest secondary steel producer in the country with annual capacity of 5.6 million tonne.

Published on February 19, 2018

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.