Tata Steel may not increase earlier bid of Rs 170 bn for Bhushan Power

Representative Image

Tata Steel Thursday indicated that it was unlikely to raise its Rs 170 billion bid for debt-ridden Bhushan Power and Steel.

Earlier, Around 90 per cent of lenders of Bhushan Power and Steel Ltd (BPSL) has voted in favour of JSW Steel's bid of more than Rs 190 billion, sources told PTI.

When asked if Tata Steel was still keen on Bhushan Power and Steel, company MD T V Narendran said, "At the price we have bid."

Tata Steel reportedly has objected to lenders of Bhushan Power and Steel Ltd (BPSL) finalising a bid of its rival JSW Steel Ltd.

"What we have said is that process has been compromised. It is not about who bid. Because earlier when we went to NCLAT we felt that Liberty Steel had bid after the last date which we felt was a compromise of the process. JSW has also bid after the last date so that's our only point that the process has been compromised. There is nothing against any of our peers," Narendran explained.

"So, our agony is that the process has been compromised and court will decide based on it immediately," he added.

Tata Steel last month submitted before the NCLAT that lenders of BPSL permitted rival JSW Steel to change basic parameters of bids after submission.

JSW Steel had revised its offer from Rs 110 billion to little over Rs 190 billion.

ALSO READ: Tata Steel's domestic production higher by 2.18% at 3.27 mt in Sept Q2

Bhushan Power and Steel was among the 12 non-performing accounts referred by the RBI for NCLT proceedings.

When asked will there be any competition threat with the world's largest steel maker ArcelorMittal planning to enter Indian steel market, "That's fine. I think we encourage good competition. We compete ArcelorMittal in Europe, so we can compete with them in India as well. I think we are confident in our own equity with our customers."

Narendran further said that the company expects to complete the Usha Martin deal within next six months.

Tata Steel Wednesday said its subsidiary Tata Sponge Iron will acquire the steel business of Usha Martin Ltd for Rs 43-47 billion.

The company further said Tata Steel has not seen much impact of the global tariff war.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel