Troubled steelmaker Bhushan Power & Steel has received bids from just two companies — Tata Steel and JSW Steel — under the insolvency resolution process, people familiar with the development told FE on Thursday. While Thursday was the last day for submitting bids, the exact value of the bids is not known. Interestingly, Tata Steel and JSW Steel have also bid for Bhushan Steel. According to the information received by FE, the fair value of the company has been pegged at close to Rs 25,000 crore. The firm’s liquidation value is estimated to be in the range of `10,000-12,000 crore. As on January 31, 33 financial creditors have claimed Rs 47,302 crore from the company and the resolution professional has so far admitted claims worth Rs 47,265 crore.
The fair value of a company is arrived at by adjusting for the value of immovable property, jewellery and art from the book value. The liquidation value is the aggregate worth of a company’s physical assets if liquidated. In September last year, Mahender Kumar Khandelwal sought resolution plans from potential applicants after being appointed, the RP for Bhushan Power & Steel by the National Company Law Tribunal (NCLT).