Steel giants show interest in Bhushan Power & Steel

2017-10-13

Oct. 13, 2017 - India source reported that several groups are interested in acquiring a stake in the loss-making and highly indebted Bhushan Power and Steel, including Tata Steel and JSW Steel. A couple of foreign steel producers also have shown interest in Bhushan Steel. One of the foreign players is believed to be Korean steel giant Posco, which has been trying to set up a plant in Odisha for several years.

Bhushan Steel, a listed company, is promoted by the Singal family which holds a stake of 43.74%. The company has an existing steel production capacity of 5.6 million tonnes per annum at its plants in Uttar Pradesh, Maharashtra and Odisha. It has invited resolution plans from potential investors by December 23 because of its heavy debt.

The IRP had called for qualification documents from interested parties on or before October 6. The company, which owes lenders close to INR 47,000 crore, has an integrated steel unit at Jharsuguda in Odisha with an annual capacity of 3.5 million tonnes per annum.