Bhushan Power And Steel Gets Bid From JSW And Tata

Bhushan Power And Steel Gets Bid From JSW And Tata

Tata Steel and JSW handed out their offers on Thursday to buy an unlisted company Bhushan Power and Steel, which was the last date for bidding. Both companies have given bidding offers over the liquidation value. This information has been given directly by the expertise sources. It was believed that Vedanta would also bid for Bhushan Power and Steel. However, it has not yet submitted any offers. JSW was late in the bidding process and did not show interest through its expression.

Bhushan Power And Steel Gets Bid From JSW And Tata

Tata Steel and JSW have given the company’s Detail Due Dealings before bidding. They also joined the pre-bid conference and they were also given access to the virtual data room. These companies have been informed about the finances of Bhushan Power and Steel. As a result, many documents were shown to both the companies as well. Arcelor Mittal was initially being included in the company’s potential claimants, but after the DU diligence, it got out of the race.

Head of Restructuring Services Mahendra Khandelwal Audit and Advisory firm BDO is also an interim resolution professional of Bhushan Power and Steel. However, he wasn’t available to get the response. SBI Caps is advising the banks in the bidding process. SBI Caps, Tata Steel and JSW spokespersons did not reply to the questions asked on the same.

Against Bhushan Power and Steel of Sanjay Singhal last year, PNB started the loan recovery process. There are about a dozen banks in the committee for the company. SBI has given the highest debt to the company in these banks. Banks have to recover a loan of Rs 48,524 Crore from the company.

The deadline for handing bids for Bhushan Power and Steel was first on January 29, which was later extended to February 8th. The reason for this is that the bank was awaiting the decision of the Insolvency and Bankers Board on the Bid Evaluation Process. The RBI had clarified through a circular that the highest bidder in the auction would be called for further negotiation. Firstly all the bidders were supposed to be called for talks. The committee of banks had also asked for a report on the fair valuation of the company’s property as it has increased the production capacities after the case started in the bankruptcy court.


However, the deal is still in the approval as there various conditions that are yet to be settled from the Bhushan Power and Steel.

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