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Vedanta, JSW may jointly bid for Essar Steel, make offer of Rs 48,000 cr

To keep Arcelor away, they could make an offer of Rs 48,000 crore

Ishita Ayan Dutt  |  Kolkata 

Essar Steel
The Essar case has been dragging for more than 570 days now against a stipulated 270 days for resolution

and are in talks to make a joint bid for Essar Steel in a last attempt to keep ArcelorMittal away. A bid together, or one from either company, could be made next week, said sources aware of the development.

said they did not comment on market speculation, while did not make a statement. The bid could be in the range of Rs 45,000-48,000 crore, and would be made on the grounds of value maximisation. Arcelor’s bid is for Rs 42,000 crore.

Sources said the were considering if should make the bid, or

Vedanta had submitted an expression of interest for Essar. JSW Steel had not, and therefore, had to partner as a step-down subsidiary in the second round of bidding. Both Vedanta and JSW Steel were aspirants for Essar Steel in the second round. This would be another attempt by both to get back in the fray.

ALSO READ: Essar Steel's former board members seek to take part in lenders' meet

After the Supreme Court order directed ArcelorMittal and to clear dues on account of defaulting firms that they were associated with, exited the race, and, in turn, JSW Steel. Between Vedanta and ArcelorMittal, the latter emerged as the preferred bidder.

Sources said even if the bid was put in by either of the companies, it would be jointly funded. In January, JSW Group Chairman Sajjan Jindal, in an interview to BloomberQuint, had hinted that his interest in Essar might not be over yet.

“It’s not done and dusted. It’s not over till it’s over,” he had said.

He had also backed Ruias’ settlement offer and said, “They (Ruias) should be given a chance. It is their company.”

The bid was likely to be made by February 28, by which the National Company Law Tribunal (NCLT) would have to pass orders on the Arcelor resolution plan, according to the National Company Law Appellate Tribunal directive.

ALSO READ: Essar Steel insolvency case: SC clears decks for ArcelorMittal's bid

The NCLT Ahmedabad Bench concluded the hearing on the resolution plan last Thursday (February 14).

The Essar case has been dragging for more than 570 days now against a stipulated 270 days for resolution. In the last leg, efforts were being made to wrap up the case after the lead lender, State Bank of India, put its loan exposure on the block. However, with yet another twist in the offing, it could be expected to stretch further.

There have been many turns in the case.

Essar Steel shareholders, the Ruias, had made a last-minute offer of Rs 54,000 crore to settle the dues of the company. However, it was rejected by the NCLT, though the have challenged the order in the appellate tribunal.

Also, in the NCLT, Essar Steel directors including Prashant Ruia, filed a fresh application that they should be consulted by the committee of creditors while considering resolution plans in line with a Supreme Court order.


  • Feb 12, 2018: Numetal, ArcelorMittal submit bids for Essar Steel
  • Mar 21: Both bids found ineligible by RP
  • Apr 2: Second round of bids submitted; NCLT directs RP to not open bids till applications are disposed of
  • Apr 19: NCLT remands the first round of bids to RP and CoC for reconsideration, renders second round invalid
  • Sept 7: NCLAT rules Numetal’s second bid valid, directs Arcelor to clear dues of defaulting firms by Sept 11
  • Oct 4: SC grants Arcelor and Numetal time to clear dues for NPAs to be eligible to bid for Essar
  • Oct 25: make a settlement offer of Rs 54,000
  • Jan 29, 2019: NCLT says Ruias’ Rs 54,000-cr bid not ‘maintainable’

First Published: Tue, February 19 2019. 00:34 IST