Tata Steel and JSW Steel are in the fray
Moneycontrol News
Usha Martin announced on Monday that its board has decided to explore the sale of its steel business and has constituted a committee consisting of its independent directors to oversee the same.
"The board at its meeting held today has decided to explore the sale of its steel business in order to achieve the objective of deleveraging the company," Usha Martin said in a statement.
"The Board inter alia reconstituted the Committee of Independent Directors to appoint investment bankers, consultants and advisors to help evaluate proposals and oversee the process..." added the company.
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As reported by Moneycontrol, Tata Steel has joined the race for Usha Martin's steel business, located in Jamshedpur. Others in the fray include JSW Steel.
Both JSW Steel and Tata Steel are believed to have signed memorandums of understanding with Usha Martin, which allows them to evaluate the asset.
Usha Martin's integrated steel plant near Jamshedpur has a capacity to manufactures one million tonne a year.
The company has a debt of around Rs 3,700 crore, most of which is long term.
In the last financial year, it brought down its losses to Rs 282 crore from Rs 354 crore a year earlier. Its revenues in FY18 stood at Rs 4,038 crore as against Rs 3,246 a year ago.
It last reported a profit in FY13.