The Bhushan Steel stock on Thursday rose up to 10 % on the rumors that Vedanta also might buy the debt-laden firm, as per media reports.
Sajjan Jindal-led JSW Steel is also said to be in talks with lenders to buy Bhushan Steel, which has debt of around INR 30,000 to INR 33,000 crore. Lenders include Punjab National Bank and State Bank of India among others.
Vedanta is looking to enter the steel sector with the possible acquisition of Bhushan Steel. The announcement of special interim dividend by Hindustan Zinc will benefit Vedanta’s financials as it holds majority stake in the former.
Lenders are likely to start a competitive bidding process for selling Bhushan Steel, the report said.
The net loss for the third quarter of FY’17 widened to INR 734 crore against net loss of INR 693.6 crore in Q3FY16. The widening of loss was led by increase in finance costs by 20% to INR 1,377.8 crore.
At 1456 hours, the stock was up 9.28 percent to INR 58 level. The stock is down 336 per cent in the last five years. The stock closed 7.48 percent higher at INR 56.75 level on the BSE.
It rose almost 52 percent during the last one year.
Bhushan Steel is engaged in the steel business located at Uttar Pradesh (Ghaziabad); Raigad, Maharashtra, and Dhenkanal, Orissa. Its subsidiaries include Bhushan Steel Madhya Bharat Ltd. and Bhushan Steel (Australia) PTY, among others.
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