Tata Steel on Friday announced that it has been selected as a successful resolution applicant by Committee of Creditors (CoC) of Bhushan Steel for buying Bhushan Steel Ltd (BSL). However, the decision is subject to required approvals from National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI). Tata Steel informed the same through a BSE filing today: “Tata Steel Limited identified as the successful Resolution Applicant for acquisition of Bhushan Steel Limited”. This disclosure is being Made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.” The decision was taken by the Committee of Creditors on Thursday. BSL was put for auction under the Insolvency and Bankruptcy Code (IBC).
As a part of bankruptcy proceedings the company was selected as the highest bidder to purchase a controlling stake in Bhushan Steel earlier this month. The two major primary bidders for Bhushan Steel acquisition were Tata Steel and JSW Steel ltd. After Tata Steel was picked as the preferred buyer on March 6, Bhushan steel employees challenged the decision. This announcement ends all the conflicts revolving around this contentious auction.
Meanwhile, on March 19, NCLT has asked the CoC to consider the objections raised by Bhushan Steel employees over the bids submitted by Tata Steel. It was on March 7 that Tata Steel has announced it received a formal confirmation from the RP that it has been identified as the resolution applicant (highest evaluated) for the debt-struck steel company. However, soon after, Bhushan Steel employees approached the NCLT that asks the lenders to reconsider their petition.
The forging industry in the country was keenly watching the entire process at NCLT. Bhushan is among the largest suppliers of the forging quality steel in the country. With problems at Bhushan Steel coming up in the last few months, raw material supply to the forging industry took a hit. It has been just a couple of years that India’s forging industry has come out of the troubled water and revival almost started here.