Shares of Electrosteel Steels gained nearly 20 percent intraday on Thursday as investors cheered a bail out offer for the company. It owes around Rs 10,000 crore to 27-member consortium led by State Bank of India.
Edelweiss Group is said to have made an offer to bail out the company and has offered a loan of Rs 1,400 crore to complete Bokaro plant expansion, sources told CNBC-TV18. The loan is a senior debt, which means that it will get a priority in repayment.
The report further added that Piramal Group withdrew the offer to acquire 51percent equity in Electrosteel Steels.
Going forward, this debt could witness a deep restructuring, where Rs 5,000 crore could be sustainable, while the rest may be converted into convertible redeemable preference shares and OCDs.
The stock gained nearly a percent in the past one month, while its three-day gain stood at 20 percent.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
