Adani Group in race to buy Stemcor India assets

Adanis are all set to participate in the auction, slated for the middle of next month, says Gautam Adani

Gujarat-based Adani Group is understood to have firmed up plans to take part in the auction of USD 800 million assets of Stemcor India, joining the likes of Tata Steel, JSW and JSPL.

Gautam Adani-led Adani Group, having primary interests in coal, power and port sectors, has already evinced interests to buy Stemcor India assets with Stemcor management in London, said a source close to the development.

Adanis are all set to participate in the auction, slated for the middle of next month, he added.

However, an Adani Group spokesman declined to comment on the issue, saying, "We don't comment on market speculations."

Stemcor India's assets is lucrative for the Adani Group mainly for two reasons. First, it would help the company to foray into the iron ore sector. Secondly, Stemcor India's trading business fits with Adani's existing business domain.

However, arranging funds could be a big issue for the company as it is already saddled with debt and thus, funds may not come easy for the company for carrying out the acquisition, industry sources said.

Meanwhile, with Adani Group in the list, the number of interested parties for Stemcor India's assets now goes beyond a dozen including Essar Steel, Vedanta Group, Adhunik Metaliks and Vale.

Stemcor India employees, backed by minority partner industrialist Sanjay Saraf, are also set to bid for the USD 800 million (Rs 4,865 crore) assets on the block.