Published: Fri, March 09, 2018
Medicine | By Earnest Bishop

Bhushan Steel shares up after Tata Steel emerges top bidder

Bhushan Steel shares up after Tata Steel emerges top bidder

"Tata Steel can add the maximum value as well as draw the most benefit from Bhushan Steel", said an analyst who covers both the industry.

Tata Steel gained 39 percent, while Bhushan Steel declined 38 percent in the last 9 months.

Yesterday, Tata Steel said that "it has received a formal communication from the resolution professional [RP] of Bhushan Steel Ltd that it has been identified as the highest evaluated compliant resolution applicant to acquire controlling stake" of the beleaguered company under the Insolvency and Bankruptcy Code 2016.

There will be further discussions with Tata Steel on their resolution plan before it will be considered for final approval by the CoC, it added.

Rare Sumatran Tiger Killed, Mutilated By Villagers Who Believed It Was Shapeshifter
Reportedly, the tiger was sleeping under a resident's stilt house when the villagers attacked it with a spear. There are around 600 Sumatran tigers left in the wild.

Bhushan Steel was on the RBI's first list of 12 companies to be referred to the National Company Tribunal Law (NCLT). As per Bhushan Steel's website, it is the third largest secondary steel producer in India with an annual capacity of 5.6 million tonne.

Meanwhile, on Thursday at 10:16 hours, the stock of Bhushan Steel was trading at Rs. 45.45 per share, up by 11.95 per cent. Tata Steel was at Rs. 642.30 per share, up 0.88 per cent. L&T alleged that Bhushan Steel, undergoing corporate resolution, has defaulted on payment for the construction of its Anugul factory in Odisha and that it should not be treated as an operational creditor.

Essar Steel Ltd, another company with a heap of sour loans owed to banks, has seen heightened interest and aggressive bidding from world's biggest steelmaker ArcelorMittal and a consortium led by Russian bank VTB, according to media reports. The ongoing controversy might impact other bids of Tata Steel and Vedanta where they are frontrunner or participating.

Like this: