Tata Steel, Vedanta, JSW Steel, Liberty House and Kalyani Steel have evinced interest in taking over the integrated steel-making facility of Kolkata-headquartered Usha Martin. The price bids are expected by this month end.

According to Rajeev Jhawar, Managing Director, Usha Martin, five companies have so far responded to the offer for sale and entered into non-disclosure agreements. The sale process is being overseen by a committee of independent directors, and SBI Caps has been appointed the investment banker.

“The process of due diligence is on. Hopefully, within this month, we should receive offers,” Jhawar told newspersons after the company’s annual general meeting here on Tuesday.

The company’s steel unit at Jamshedpur in Jharkhand at present has a production capacity of one million tonnes. During FY18, the steel business registered a revenue of ₹2,626 crore and accounted for nearly 55 per cent of the company’s consolidated turnover, which stood at ₹4,768 crore.

The wire and wire rope business, which earned a revenue of ₹1,512 crore during FY18, accounts for nearly 32 per cent of the company’s consolidated turnover.

As of March 31, 2018, Usha Martin’s total debt stood at ₹4,600 crore. The company repaid close to ₹540 crore in FY18, and is looking to repay ₹320 crore this fiscal, Jhawar said.

When asked about the progress made on settlement of legal disputes with the co-promoter group, led by his cousin Prashant Jhawar, Rajeev said the focus would first be to “set the company on track”.

In April 2017, a consortium of lenders led by State Bank of India had removed Prashant from the post of Chairman following his refusal to pledge shares as a part of a loan covenant with the lenders.

Prashant subsequently moved the National Company Law Tribunal (NCLT). The company’s attempt to raise capital through a warrant issue, to be converted into shares on a preferential basis at a later date, was also stalled following an order from the NCLT. Prashant was absent at Tuesday’s AGM.

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