Debt-laden Bhushan Steel hit the upper circuit by gaining 20 per cent to ₹54 on the NSE on Monday, even as Tata Steel, whichemerged as the largest bidder to take over Bhushan Steel, slumped 6 per cent to ₹648.

The debt resolution professional (RP) working on the Bhushan Steel insolvency said Tata Steel, JSW Living, a joint venture between JSW and Piramal Enterprises, and employees of Bhushan Steel are the bidders for the company.

A broad summary of the resolution plans were presented by the RP to the committee of creditors (CoC) on February 16. The RP, and its advisors, will now review the plans to ensure that these 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 will be convened to present the compliant plans for the consideration of the CoC, said Bhushan Steel.

VK Sharma, Head - Private Client Group, HDFC Securities, said the bid placed by Tata Steel is not expensive compared to the capex involved in setting up a greenfield steel plant project of similar size, and also there are synergies with Tata Steel’s existing assets in the eastern region. However, he added, investors are concerned, given the debt already on Tata Steel’s books.

Speaking to the media on the sidelines of an event, TV Narendran, MD, Tata Steel, said: “I would not comment on the numbers. Media report says we are the highest... if media reports about the other bids are right, then probably we are the highest.”

Tata Steel is raising ₹12,800 crore through a rights issue, which will open for subscription on Wednesday. The company has logged its best quarterly performance in the December quarter on the back of better price realisation in India and lower cash burn at its European operations.

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