Tata Steel bid for Bhushan Steel; stock up 2%
On Tuesday, it was observed that Tata Steel’s shares were up around 2 percent intraday as investors read into the brokerage views on its bid for Bhushan Steel’s assets. Firming up of metal prices also aided it. Tata Steel emerged as the highest bidder for Bhushan Steel with a surprise bid of Rs 35,000 crore. JSW Steel, which was the favourite till the end of the race, was second placed with a bid of Rs 29,700 crore.
Bhushan Steel is one of the 12 large corporate accounts identified by the Reserve Bank of India that accounted for almost 25 percent of exposure to bad loans for the entire banking sector.
The Neeraj Singal-led company had accumulated debt of over Rs 50,000 crore, of which bank dues amounted to around Rs 44,000 crore. The development follows a meeting between the lenders of Bhushan Steel and the resolution professional earlier in the day today. According to reports, the liquidation value of Bhushan Steel stood at Rs 15,000 crore.
Tata Steel and JSW Steel had submitted their bids on February 3. Initially, Tata Steel’s bid was said to close to Rs 24,000 crore.