Bhushan Steel surges 20% after Tata Steel emerges as highest bidder to acquire Company

By Moneycontrol News

Moneycontrol News

Shares of Bhushan Steel and Tata Steel rose 19 percent and 2 percent respectively in the early trade Thursday as Tata Steel emerged as a highest bidder to acquire Bhushan Steel.

In a regulatory filing Bhushan Steel said that the compliant resolution plans were presented to the committee of creditors (CoC) and the resolution plan submitted by Tata Steel has been identified as the highest evaluated compliant resolution plan.

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There will be further discussions with Tata Steel on their resolution plan before it will be considered for final approval by the CoC, it added.

Tata Steel had emerged as the highest bidder with a bid of Rs 35,000 crore, with JSW Steel finishing second with a bid of Rs 29,700 crore.

Bhushan Steel has an annual production capacity of 5.6 million tons, and will add significantly to Tata Steel’s 13 million tons. This will make Tata Steel the largest steel maker in India, overtaking JSW Steel, at least for the time being.

At 09:24 hrs Bhushan Steel was quoting at Rs 45.70, up 12.56 percent and Tata Steel was quoting at Rs 655.35, up 1.13 percent on the BSE.

Tata Steel gained 39 percent, while Bhushan Steel declined 38 percent in the last 9 months.

Posted by Rakesh Patil