On January 24, the insolvency resolution professional (IRP) of Bhushan Steel had extended the deadline for submission of resolution plans to February 3, 2018 from January 25, 2018.
"The liquidation value has been set at Rs 150 billion, 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 Rs 250 billion to Rs 300 billion," the source 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 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, 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 Rs 444.78 billion to its lenders.
According to the information on Bhushan Steel Ltd website, the company is the 3rd largest secondary steel producer in the country with an existing steel production capacity of 5.6 million tonne per annum.