New Delhi: Piramal Enterprises will join JSW Steel and its Japanese business partner JFE Steel Corp to bid for debt-laden Bhushan Steel, a source privy to the development said.
As per initial plans, JFE Steel will keep over 50 percent stake in the business and the rest will be divided between JSW Steel and Piramal Enterprises, the source said.
"JSW Steel along with JFE Steel and Piramal Enterprises will bid for Bhushan Steel. JSW Steel will keep minority stake with itself, some will be with Piramal and a majority say over 50-60 per cent will be with JFE Steel but the operational power will be with the steelmaker," the source said while requesting anonymity.
Email queries sent to Piramal Enterprises and JSW Steel for a response remained unanswered.
Piramal Enterprises is the flagship firm of Piramal Group and its investments span across pharma, information management, and financial services.
The insolvency resolution professional (IRP) has already extended the last date for submitting bids for Bhushan Steel until February 3, 2018, from January 25 earlier.
Japanese JFE Steel also holds about 15 percent stake in the Sajjan Jindal-run steel firm. The country's top steelmaker has entered into a technological collaboration with JFE Steel Corp to manufacture high strength and advanced high strength steel for the automobile sector.
Bhushan Steel, one of the 12 non-performing assets referred by the Reserve Bank of India for NCLT proceedings, owes an amount of Rs 44,478 crore to its lenders.
According to the information on Bhushan Steel Ltd website, the company is the 3rd largest secondary steel producer in the country with an existing steel production capacity of 5.6 million ton per annum.
Tata Steel, JSW Steel, and Vedanta are other players that have shown interest in Bhushan Steel.