Numetal to sweeten bid to Rs 44,000 crore for Essar? And will JSW hike stake in Numetal?

Numetal is working on sweetening its bid for Essar Steel to almost Rs 44,000 cr, ET Now leans from sources close to the development. This would be almost 18% higher than its existing bid of approximately Rs 37,0000, and adds a fresh twist to the corporate battle between Numetal and ArcelorMittal for taking over Essar Steel.

Sources add Sajjan Jindal's JSW increasing its stake beyond 26% in Numetal cannot be ruled out. ET Now has not been able to ascertain if JSW would hike its stake at the time of the bid revision, or if only Numetal succeeds in winning ArecelorMittal.

Numetal revising its bid higher is subject to Essar Steel's Committee of Creditors approval. A bid of Rs 44,000 cr would be higher than ArcelorMittal's current offer of Rs 42,000 cr. But to win Essar Steel, ArcelorMittal has also committed to pay an additional Rs 7,000 cr of outstanding dues of KSS Petron and Uttam Galva.

On Sep 27, Numetal's Counsel Mukul Rohatgi had told the Supreme Court it wants to hike its bid and match the offer by archrival ArcelorMittal. The top court responded it would refrain from getting into bid values, and would only decide on the eligibility of the two parties.

It would be a logical conclusion that ArcelorMittal will move Court if Numetal is indeed allowed to revise its bid upwards. It also has the ability to increase its bid, according to experts.