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Jindal Stainless Steel has risen as the highest bidder in the race to acquire the distressed steel company, Mittal Corp.
Jindal Stainless Steel is India's first and largest stainless steel company which has been in operation since 1970. It serves 60 countries and is said to be the world's largest producer of razor blade grade stainless steel and among the largest producers of coin blanks in the world.
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In a report by Economic Times, it was revealed by two people aware of the matter that Jindal Stainless Steel (JSS) has made an offer of Rs 250 crores upfront cash payment, which has catapulted JSS into the position of the highest bidder for Mittal Corp.
JSS was among six companies that have submitted confirmed bids. The five other companies: Rimjhim Ispat Ltd, Shyam SEL & Power Ltd, Saarloha Advanced Material Pvt Ltd, Kalyan Toll Infrastructure, and Trishakti Power Pvt Ltd have reportedly submitted firm bids in the range of Rs 120-200 crores.
Indore-based Mittal Corp has two steel-making units and is engaged in the production of cold-rolled steel and coated steel products for automobiles, home appliances, and construction. The insolvency of Mittal Corp has been in process for a fairly long time. In 2016, its lenders had attempted to sell the company but were unable to, due to a lack of buyers, following which the company was admitted to NCLT by a petition from PNB.
The resolution professional (RP), Shailendra Ajmera, has admitted verified claims of Rs 1,587 crores against the distressed steel manufacturer. When bids were invited for the company, 30 parties gave Expression of Interest (EoI) to the RP which consisted of several big names like Vedanta and Welspun.
The bid of JSS, which is the highest for the bankrupt company, translates to a 15.75% recovery for its lenders. PNB, SBI, IDBI Bank, and ACRE are the biggest lenders of Mittal Corp.
Article by Aman Agarwal.
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