State-owned SAIL said any such buyout by the world's top steelmaker, controlled by billionaire Lakshmi Mittal, could violate its exclusive partnership arrangement for manufacturing steel for cars, the document was seen by Reuters showed.
The company was included in the first list of 12 stressed accounts that Reserve Bank of India (RBI) has banks to initiate bankruptcy proceedings.
While the consolidation is certainly on the cards, it will be interesting to see who all bags some of these assets. With the improved outlook for steel, sellers are gaining bargaining power.
Ashwani Gujral of ashwanigujral.com suggests buying Bajaj Finance, Sun Pharma Advanced Research, Adani Power, Bhushan Steel and State Trading Corporation of India.
The measure allows the RBI to initiate insolvency resolution process on specific stressed assets. The RBI would also be empowered to issue other directions for resolution, appoint or approve for appointment, authorities or committees to advise the banking companies for stressed asset resolution.
A bench headed by Justice MM Kumar also reserved order on the plea filed by Punjab National Bank (PNB) against Bhushan Steel & Power Ltd.
Rajat Bose of rajatkbose.com is of the view that one may hold Bhushan Steel.
Ashwani Gujral of ashwanigujral.com is of the view that one may buy CESC and DCB Bank and can sell Bhushan Steel, Indian Oil Corporation and Pidilite Industries.
The tribunal, which has also jurisdiction in the matters related to insolvency and bankruptcy code, was hearing two petitions filed by lead lenders SBI and PNB.
Audited net loss for the quarter was 11.31 billion rupees ($174.7 million), compared with the unaudited 7.57 billion rupees loss reported in May, Bhushan Steel said late on Wednesday.
This week the banking sector focused on the 12 large corporate bad loan accounts identified by RBI to be taken to the National Company Law Tribunal under the Insolvency and Bankruptcy Code.
The two companies are among the 12 accounts identified by RBI to be immediately referred to the National Company law Tribunal (NCLT) under the Insolvency and Bankruptcy Code
On June 22, 2017 ILandFS Financial Services sold 22,56,000 shares of Bhushan Steel.
The decision was taken at a marathon meeting chaired by the SBI. While Bhushan Steel is in default of Rs 44,478 crore to banks, Essar Steel owes Rs 37,284 crore and Electrosteel Steels Rs 10,273.6 crore.
Ashwani Gujral of ashwanigujral.com recommends buying Bhushan Steel, Balkrishna Industries and Titan Company.
Debt-laden Bhushan Steel today reported widening of net loss to Rs 756.76 crore for the fourth quarter ended March 31, 2017.
Bajaj Auto | Laurus Labs | M&M | Bhushan Steel | SPARC | Deccan Cement are stocks, which are in news today.
Ashwani Gujral of ashwanigujral.com recommends buying Bhushan Steel, India Cements, HDIL, Can Fin Homes and Bajaj Finserv.
Ashwani Gujral of ashwanigujral.com is of the view that Bhushan Steel can move 10-15 percent higher while Escorts may test Rs 650.
"The company is in discussion with banks for arriving at long-term solutions for the debt but nothing is finalised so far. There is no other discussion being done with any other bank for refinancing," Bhushan Steel said in a filing to BSE.
According to government sources NPAs in steel sector will be resolved first post the Ordinance that was signed last week.
Ashwani Gujral of ashwanigujral.com
Ashwani Gujral of ashwanigujral.com suggests buying SREI Infra, Syndicate Bank and Bhushan Steel.
The company has expressed interest in acquiring some of the stressed steel-makers, but there has not been much progress on that as banks appear not keen to take a haircut.
While the company is looking at making acquisitions to take its steel capacity to the targeted 40 MT, it wants to keep a tight control over key financial ratios.