No lender has approached company to take control: Electrosteel

Electrosteel Steels today said no lender has approached the company for taking control of it under the Strategic Debt Restructuring (SDR) route to recover their dues.
"We would like to inform you that no lenders have approached the company for the same," the Kolkata-based firm said in a BSE filing after reports that lenders may take over the control of the company.
The company further said it "affirms that it follows highest standard of corporate governance and maintains transparent policy by disseminating all information to all its stakeholders."
The company was reacting to reports that a group of lenders that have an exposure to the steel maker may take the Strategic Debt Restructuring or SDR route to recover their money.

The firm has been under corporate debt restructuring scheme since 2013 with a debt of more than Rs 6,000 crore.
The Reserve Bank of India (RBI), providing more teeth to lenders, had in June allowed banks to take control of debt-laden companies by converting loans into equity, if a debt restructuring fails to revive them within a stipulated timeframe.

Capital markets regulator Sebi has already relaxed the norms for banks to take over the ownership of such companies under a new Strategic Debt Restructuring regime.
"With a view to ensuring more stake of promoters in reviving stressed accounts and provide banks with enhanced capabilities to initiate change of ownership in accounts which fail to achieve the projected viability milestones, banks may, at their discretion, undertake a 'SDR' by converting loan dues to equity shares...," RBI had said in a notification.

Last month, Electrosteel has said that Tata Group has shown interest in investing in it besides a Singapore-based financial investor.
"The lenders/company has now received indicative term sheets for investment in the company from Tata Group as well as from a financial investor based in Singapore," it said in a BSE filing, adding that the bankers...As well as the company are exploring the proposals of investment.
In April, there were reports that Anil Agarwal-led Vedanta is eying a minority stake in the debt-laden firm and there have been initial talks in this matter between Vedanta and Electrosteel.
However, Electrosteel denied "any action/discussion as contemplated in the media report with regard to sale of the company".

According to the firm's website, Electrosteel Steels has a 2.5 million tonnes per annum (MTPA) greenfield integrated steel plant near Bokaro (Jharkhand).
The shares of the company today closed 1.58 per cent up at Rs 3.86 apiece on the BSE.