NEW DELHI: In a bid to give tough competition to competitors, JSW Steel Ltd is expected to double its bid value for debt-laden Bhushan Steel Ltd, a person privy to the development said. The last date to submit the bids now is 3 February 2018.
On 24 January, the insolvency resolution professional (IRP) of Bhushan Steel had extended the deadline for submission of resolution plans to 3 February 2018 from 25 January 2018. “The liquidation value has been set at Rs15,000 crore, below that the bid will not be accepted. Looking at the competition, JSW Steel is expected to double its bid amount. It can be between Rs25,000 crore to Rs30,000 crore,” the person cited above said.
Liquidation value is the minimum value set for a stressed asset by the committee of creditors. Below that bid will not be accepted.
Luxembourg-based multinational steel firm ArcelorMittal and domestic industry major Tata Steel Ltd are also in the race for Bhushan Steel, which is undergoing insolvency proceedings.
JSW Steel has decided to bid for Bhushan Steel, maker of auto-grade steel in India, in a team. It has roped in its Japanese business partner JFE Steel Corp. and Piramal Enterprises Ltd, which is the flagship firm of Piramal Group, for the purpose.
Bhushan Steel, one of the 12 non-performing accounts referred by the Reserve Bank of India for National Company Law Tribunal (NCLT) proceedings, owes an amount of Rs44,478 crore to its lenders. According to the information on Bhushan Steel’s website, the company is the third largest secondary steel producer in the country with an existing steel production capacity of 5.6 million tonne per annum.
Source: Press Trust of India