Tata Steel adds heft to its Bhushan Steel acquisition with a successful bid for Bhushan Energy
At its April 25 closing price of Rs 510 per share, its stock is trading at seven times its FY20 estimated price-to-earnings, which is quite reasonable
Sakshi Batra does a 3 Point Analysis fine print of the result of Tata Steel's newly acquired company.
Tata Steel helped Bhushan to swiftly gain its lost production.
The searches were carried out at multiple locations in a number of cities, including the Delhi-NCR, Chandigarh and Kolkata at office and residential premises of the company, its directors and promoters and their associates, they said.
We expect that the Tata’s will play nice here – and either merge the company with Tata Steel, at a possible conversion price closer to Rs 30 per share (effectively) after conversion
Earlier, Tata Steel had won the bid to acquire debt-laden Bhushan Steel in an insolvency auction.
Bhushan Steel's own brand will continue to be in place for now, Anand Sen said.
Its total income during July-September quarter increased to Rs 5,907.47 crore, over Rs 4,325.60 crore in the year-ago period, the filing said.
The company had produced 0.85 MT during the July-September period of 2017-18 fiscal, it said in a BSE filing.
Bhushan Steel's Odisha plant is presently operating at 3.5 million tonne against a capacity of 5 million tonne
Even at 90% capacity utilisation and assuming a 50% improvement in current EBITDA per tonne to about Rs 8250 per tonne over the next two years, it can potentially generate operating profits of about Rs 740 crore.
The unit has a trained doctor, a nurse, a pharmacist and necessary medicine
The Delhi High Court had on August 29 granted bail to Singal, arrested by the SFIO for allegedly siphoning off Rs 2,500 crore of public funds.
A bench of Justice A M Khanwilkar and D Y Chandrachud said it will pass orders on the plea of the Serious Fraud Investigation Office (SFIO), while agreeing to hear the probe agency's appeal against the release order today.
The statement comes amid reports that Tata Steel has started the process of cancelling PPAs between Bhushan Steel and Bhushan Energy in a bid to cut costs.
The observations by the court came during the hearing of a habeas corpus plea moved on behalf of Singal, through advocate Pramod Kumar Dubey.
Neeraj Singal, the promoter, was arrested on August 8 in relation to an SFIO investigation into the affairs of Bhushan Steel Ltd and Bhushan Steel and Power Ltd.
Bhushan Steel, and its erstwhile promoters, have been previously accused of siphoning off over Rs 2,000 crore.
Tata Steel’s offer stood at Rs 17,000 crore and Liberty House’s bid was retained at Rs 18,500 crore
Bhushan Steel is one of the 12 big cases that had been referred for insolvency resolution by banks.
Bamnipal Steel Limited, a wholly-owned arm of Tata Steel Ltd, is the sole promoter of Bhushan Steel, holding 72.65 per cent of the paid-up share capital of the company, the steel maker said in a filing to BSE.
The National Company Law Appellate Tribunal (NCLAT), hearing appeals against the acquisition filed by Bhushan Steel's founding Singal family and the firm's operational creditor Larsen and Toubro, asked Tata Steel to submit a statement of statutory dues of the company.
Tata Steel Ltd (TSL), which won the bid for Bhushan Steel Ltd (BSL) under the insolvency process, completed the acquisition of controlling stake of 72.65 percent in the debt-laden firm last week.
"Yes Bank has recovered an amount of Rs 184 crore against an original claim filed for Rs 325 crore pursuant to the sale of Bhushan Steel to Tata Steel Limited under the recently concluded NCLT/Insolvency and Bankruptcy Code (IBC) proceedings," Yes Bank said in a BSE filing.