Shares of beleaguered steel firm Bhushan Steel, now undergoing bankruptcy proceedings, got a shot in the arm on Thursday when it became clear the country's leading steel maker Tata Steel has emerged as the highest bidder. The resolution period for Bhushan Steel would end on April, 22 after NCLT granted a 90-day extension beyond the initial mandate of 180 days to the committee of creditors in December, 2017.L&T's move comes a day after Tata Steel said it was identified as the highest bidder for acquiring the controlling stake in Bhushan Steel. "The next steps in the process will be as per the stipulations under CIRP of the IBC", it added.
Tata Steel had emerged as the highest bidder with a bid of Rs 35,000 crore, with JSW Steel finishing second with a bid of Rs 29,700 crore.
Bhushan Steel, which is going through insolvency proceedings, was up 11.58 per cent at Rs 9.40 am (IST).
Bhushan Steel was on the RBI's first list of 12 companies to be referred to the National Company Tribunal Law (NCLT).
The judicial members of NCLT on Thursday have asked Vedanta, Tata Steel and resolution professional for Electrosteel Steels insolvency proceedings to submit a reply, following petition of Renaissance Steel of Dalmias on March 5.
Bhushan Steel has an annual production capacity of 5.6 million tons, and will add significantly to Tata Steel's 13 million tons. The liquidation value of Electrosteel Steels is Rs 2,900 crore.
If the deal goes through, this asset will not only help Tata Steel tighten its grip on the country's eastern region but perhaps also help it to snatch the title of "India's largest steel maker" from JSW Steel. They are also in the fray for assets of Essar Steel.