Tata Steel top bidder for Bhushan Power & Steel - Report

Image Source: realtyplusmag

Business Standard reported that Tata Steel seems to be emerging the highest bidder for Bhushan Power and Steel. According to sources close to the development, Tata Steel has offered to pay INR 170 billion upfront as against JSW’s bid for INR 110 billion. The liquidation value of Bhushan Power was estimated to be around INR 90 billion and the fair value around INR 250 billion.

The finals bids were placed on February 9 and sent to the legal team for scrutiny. SBI caps will now evaluate the bids.

Around 13 companies had submitted expressions of interest. Some did not qualify and only five were provided access to the virtual data room.

The company’s debt stood at INR 372 billion in 2015-16. Net sales were at INR 77 billion and losses at Rs 24.36 billion. The dues, however, have now risen to INR 470 billion.

The unlisted company has a steelmaking capacity of 3 million tonnes in Odisha, West Bengal, and Chandigarh.

Source : Business Standard