JSW Steel and Tata Steel stock up as they bid for Bhushan Power & Steel
MUMBAI: Shares of JSW Steel rose 5 per cent while Tata Steel was up 1.6 per cent on reports that these two companies have emerged as contenders for Bhushan Power & Steel, which went under hammer today.
Senior officials from the banking circle said that the resolution professional received just two bids – JSW Steel and Tata Steel- till close of the day. ArcelorMittal and Vedanta Resources had conducted due diligence but did not submit a binding bid, said people quoted above.
"The resolution professional will evaluate the bid and present it before the lenders," said a bank official. The company faces claims of Rs 49,264 crore from financial creditors and Rs 1172 crore from operational creditors.
ET had reported on January 18 that the liquidation value of Bhushan Power was pegged at Rs 20,000 crore by PricewaterhouseCoopers and Duff& Phelps. Liquidation value refers to the worth of a company's assets if they are sold on a piecemeal basis and not as a going concern.
Bhushan Steel is owned by Neeraj Singhal while Bhushan Power and Steel is owned by Sanjay Singhal. Both companies went under hammer within a week. Both are brother but with independent business interest.
In case of Bhushan Steel, the resolution professional has yet not disclosed which among the two has given highest bid as they are still evaluating the bids.
Senior officials who are familiar with the development said that the resolution professional for Bhushan Steel has sought more details on the resolution plan from JSW Steel and Tata Steel since both bids were laced with certain conditions.
There are speculation that JSW Steel is the highest bidder for Bhushan Steel offering almost double the liquidation value which is Rs 15,000 crore.
BSE 30—share index was almost flat to close at 34,413 point. JSW Steel closed 5 per cent up at Rs 304.65 after touching a high of 308. Bhushan Power & Steel is not a listed company.