ALSO READNifty Metal index hits 52-week high; Jindal Steel, APL Apollo up over 5% Steel stocks in focus as Tata Steel posted good sales, production in Q2FY18 Metal shares under pressure; Nifty Metal index down over 2% BSE Metal index hits 6-year high; Tata Steel, Jindal Steel hit 52-wk highs Metal shares under pressure; Nifty Metal index down 2%
At 02:45 pm; Nifty Metal index, the largest loser among sectoral indices, was down 1.5% against 0.1% rise in the Nifty 50 index.
Meanwhile, Tata Steel slipped nearly six-month low at Rs 607, down 4% on the BSE in intra-day trade, extending its past two days 4% decline after the company on Wednesday said that it has emerged as the top bidder for debt-laden Bhushan Steel.
In past one week, the stock has fallen 10% against 1.8% decline in the S&P BSE Sensex. The stock is currently trading at its lowest level since September 25, 201.
“The company has received a formal communication from the Resolution Professional of Bhushan Steel (BSL) that it has been identified as the highest evaluated complaint resolution applicant to acquire controlling stake of BSL under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC), as decided in the meeting of the Committee of Creditors (CoC) of BSL on March 6, 2018,” Tata Steel in a press release.
Following the communications, the advisors of the CoC and Resolution Professional of BSL are currently in discussion with Tata Steel on the resolution plan. The next steps in the process will be as per the stipulations under the CIRP of the IBC, it added.
According to Business Standard report, investors are worried about the massive premium paid by the company for Bhushan Steel as compared to its rival JSW Steel. Its bid for Bhushan Steel is pegged at over Rs 400 billion, which includes Rs 352 billion of upfront payment to financial creditors and another Rs 12 billion to operational ones.
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