Tata Steel, whose bid for debt-ridden Bhushan Steel was approved by NCLT, would implement the resolution plan through its step-down subsidiary Bamnipal Steel Ltd.
Bamnipal Steel would invest in the debt-ridden company and acquire control on closing date, Bhushan Steel Ltd said in a regulatory filing.
"As per the terms of approved Resolution Plan, Bamnipal Steel Limited (BNPL), a wholly-owned subsidiary of Tata Steel, will initially subscribe to 72.65 per cent equity share capital of BSL at face value i.e. at Rs 2 per share, for an aggregate amount of Rs 158.89 crore," Tata Steel said in a filing to the BSE.
In an identical filing, Bhushan Steel confirmed the development saying Tata Steel shall implement the resolution plan through Bamnipal Steel Ltd, a wholly owned subsidiary of Tata Steel.
It further added: "Pursuant to the resolution plan, Bamnipal Steel would invest in, and acquire control of, the company on closing date."
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