Monnet Ispat & Energy rose 1.38% to Rs 29.45at 15:21 IST on BSE after media reports suggested that private equity firms expressed formal interest in buying a controlling stake in the company.
Meanwhile, the S&P BSE Sensex was down 436.71 points, or 1.38% to 31,163.05.On the BSE, 1.62 lakh shares were traded in the counter so far, compared with average daily volumes of 2.06 lakh shares in the past one quarter. The stock had hit a high of Rs 34 and a low of Rs 29.40 so far during the day.
According to reports, US-based TPG, Blackstone, and Singapore-based SSG Capital are believed to be among the likely bidders that have sent formal expressions of interest (EoI) for Monnet Ispat & Energy. After a round of initial scrutiny, the list of bidders is likely to be pruned in the next couple of months, reports added.
The shortlisted applicant will draw up a resolution plan to infuse fresh capital, a move that will help repay part of the company's outstanding dues to creditors. Collectively, Monnet Ispat has a debt exposure of about Rs 12000 crore, reports said.
In July, the National Company Law Tribunal (NCLT) admitted the insolvency proceedings against Monnet Ispat and Energy after the bankers, led by the State Bank of India, confirmed the default amount at Rs 1539 crore. Monnet Ispat was the second such company to be admitted for bankruptcy proceedings, reports suggested.
Monnet Ispat & Energy reported net loss of Rs 400.06 crore in Q4 March 2017 as against net loss of Rs 358.73 crore in Q4 March 2016. Net sales declined 17.7% to Rs 310.03 crore in Q4 March 2017 over Q4 March 2016.
Monnet Ispat & Energy manufactures and markets sponge iron, steel and ferro alloys. It is also engaged in mining of minerals like coal and iron ore.
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