Bhushan Steel

Tata Steel is the highest bidder | Bhushan Steel takeover

Tata Steel is announced to be the highest bidder for the takeover of Bhushan Steel. In stiff fight with JSW Steel, the all in cash offer of Tata Steel is weighing more than others. On Wednesday it has been declared to be the highest bidder.

This will be first large transaction under IBC (Insolvency and Bankruptcy Code), 2016. Bhushan steel was performing at a significant loss and went under IBC consideration by NCLT after SBI (State Bank of India) and PNB (Punjab National Bank) had raised the issue. The case was admitted by NCLT on 26 July 2017.

If this deal gets a successful closure then it will be a big relief for the government officials, those are trying to liquidate the stressed asset. Bhushan steel is having the debt of more than ₹ 46000 Crore, which can be now recovered with some losses. NCLT is considering many large companies, those aren’t able to pay their dues. This success will support the future action.

Tata Steel has not given any confirmation over the volume of the bid, but it is approximated near ₹ 35000 Crore. Vijaykumar Iyer ( from Deloitte) is Resolution Professional for the case of Bhushan Steel. After the discussion and processing finalized, the case will be referred to NCLT for final approval.

The Bhushan Steel is having steel production capacity of 5.6 mtpa (mtpa: Million Tonnes Per Annum). Which is almost one-fifth of the current capacity of Tata Steel which is at 27.5 mtpa. This transaction is observed as a good strategic move by Tata Steel.

Post Author: SimplyVedant

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