Stressed steel plants acquired via IBC seeing faster turnaround: CRISIL

Stressed steel plants1acquired under the Insolvency and Bankruptcy Code (IBC) resolution process in India are seeing faster returns. Despite pandemic-linked blips, domestic demand outlook remains strong, helping acquirers ramp up utilisation levels, according to rating agency CRISIL.

The steel plants acquired via IBC process include Bhushan Steel, Essar Steel, Electrosteel Steels, Monnet Ispat & Energy Ltd and Bhushan Power & Steel.

The ongoing steel upcycle will also mean stronger-than-expected realisations over the medium term. Consequently, acquirers may see about 20 per cent faster payback and are well set to tap the brownfield potential housed under these assets.

The five stressed steel capacities, totalling