Uttam Galva Steels may soon be put on the block, reports CNBC-TV18. The company has been reeling under debt of around Rs 4,600 crore including working capital and had been earlier directed by lenders to rope in an investor.
Liberty House and JSW Steel are likely among potential buyers in the race to acquire the company, which has capacity of around 1 million tonnes of cold rolled coil (CRC).
SBICAPS has been mandated by the company to find an investor, failing which lenders may consider bringing in new investor via Strategic Debt Restructuring (SDR) route.
Lenders are likely to hold a review meeting with promoters in July in this regard.Currently, promoters hold 60.8 percent stake in the company, of which ArcelorMittal Netherlands holds around 29 percent. Reacting to the news, Chintan Mehta of Sunidhi Securities said, it depends on valuations, but JSW might prefer to keep its kitty funded to secure raw material procurement as Karnataka mines auction is coming up. None of the parties involved responded to a query. Watch video for more...
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