Bhushan Steel soars as Tata Steel emerges top bidder

Bhushan Steel rose 12.32% to Rs 45.60 at 14:21 IST on BSE after Tata Steel emerged as the highest bidder to buy a controlling stake in Bhushan Steel.

The announcement was made after market hours yesterday, 7 March 2018.

Meanwhile, the S&P BSE Sensex was up 248.12 points, or 0.75% to 33,281.21.

On the BSE, 17.81 lakh shares were traded in the counter so far compared with average daily volumes of 7.01 lakh shares in the past two weeks. The stock had hit a high of Rs 48.70 and a low of Rs 44.25 so far during the day. The stock hit a 52-week high of Rs 102.80 on 18 May 2017. The stock hit a 52-week low of Rs 39.35 on 6 February 2018.

Bhushan Steel announced that the compliant resolution plans were presented to the Committee of Creditors (CoC) in its meeting held on Tuesday, 6 March 2018. The resolution plan submitted by Tata Steel has been identified as the highest evaluated compliant resolution plan. There will be further discussions with Tata Steel on their resolution plan before it will be considered for final approval by the CoC.

Shares of Tata Steel was down 2.16% at Rs 634. In a separate announcement, Tata Steel informed after market hours yesterday, 7 March 2018, that it has received a formal communication from the resolution professional of Bhushan Steel (BSL) that it has been identified as the highest evaluated compliant 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 6 March 2018. The advisors to the CoC and resolution professional of BSL are currently in discussions 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 said.

Bhushan Steel reported net loss of Rs 1607.06 crore in Q3 December 2017 as against net loss of Rs 734.04 crore in Q3 December 2016. Net sales rose 17.53% to Rs 4244.29 crore in Q3 December 2017 over Q3 December 2016.

Bhushan Steel is one of the prominent players in the Indian Steel industry.

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