June 2018
6:47 PM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | About Deepika 
Business News
Tata Steel emerges as the highest bidder for Bhushan Steel with a surprise bid of Rs 35,000 crore
(Mumbai, Feb 19, 2018):Tata Steel has just pulled off its largest acquisition to date. Pipping JSW Steel - contrary to all speculation - it has reportedly emerged as the highest bidder for Bhushan Steel. The latter, to remind you, was on RBI's first list of 12 companies to be referred to the National Company Tribunal Law (NCLT) and according to the latest Economic Survey, claims admitted under the insolvency proceedings stand at a whopping Rs 55,989 crore, making it the biggest bankruptcy, so far, to go under the hammer. What a coup pulled off by N. Chandrasekaran, the first non-Parsi chairman of the Tata Group in its 150-year-old history, as he begins the countdown to his first anniversary in office.

According to MoneyControl, Tata Steel's surprise bid of Rs 35,000 crore was Rs 5,300 crore more than rival JSW Steel's offer. The aggressive bidding makes sense since Bhushan Steel's annual capacity is 5.6 million tonne - according to its website. It is the third largest secondary steel producer in the country and its acquisition will help Tata Steel tighten its grip on the eastern region. According to advisory firm Bonaz Capital, this acquisition would help it to increase domestic steel capacity by around 43 per cent to 18.6 million tonnes per annum. "We expect the company to report revenue CAGR of 5.3 per cent over FY17-20E [expected] aided by 6.1 per cent volume growth in domestic steel production...EBITDA margins are also likely to expand by [around] 573 bps owing to better utilization for Tata Steel India," it added.

But given that the crippled Bhushan Steel Ltd reported widening of its net loss to Rs 1,607 crore for the quarter ended December 2017, a jump of 116 per cent year-on-year, not everyone is excited by the prospects. Shares of Tata Steel are down 7 per cent since morning. But the share price of Bhushan Steel has jumped up a whopping 20 per cent, the most in three months.

Incidentally, Tata Steel is also the leading bidder for Bhushan Power and Steel. According to The Economic Times, lenders to the company decided that they would only consider Tata Steel's offer of Rs 24,500 crore - which includes an upfront payment of Rs 17,000 crore to lenders, a cash infusion of Rs 7,000 crore to meet the company's working capital requirements and a payout to operational creditors-for further negotiations on Wednesday, setting aside JSW Steel's offer that is lower by Rs 11,500 crore. Sources also told the daily that if Tata Steel does manage to pull off both acquisitions, it might gain half the market share for flat-steel products in the country.

Air India set to have 'Maharaja' class seats on international flights
Taj group acquires Lutyen's Delhi hotel in NDMC auction
Air India set to have 'Maharaja' class seats on international flights
Google announces training programme for journalists
Sensex tanks 261 pts as US-China trade spat escalates
FCA India launches Jeep Compass variant at Rs 17.53 lakh
RBI releases June '18 issue of monthly bulletin
Walmart expects to close Flipkart deal by the end of 2018
Passenger vehicle sales rise 20% in May
Cabinet approves bailout package for sugar industry
India to enter top 10 OTT video markets in 4 years: PwC
Kochhar on annual leave, not forced one: ICICI Bank
In AirAsia Case, CBI To Probe Role Of 2 Former Ministers
London police seize bitcoin worth $667,000 from hacker
PNB fraud: ED files charge sheet against Nirav Modi, associates
Natco Pharma PAT for Q ending March 31 up by nearly 70 pc
SBI Q4 loss at Rs 7,718 crore as NPA provisions jump
PNB fraud: ED attaches Nirav Modi’s properties worth Rs 171 cr
Sohan Roy features in Top 100 Indian Business Owners by Forbes Middle East
NITI welcomes $16 bn Walmart-Flipkart deal
Kerala among 13 states on thunderstorm alert
 (New Delhi, May 7, 2018): Thunderstorms accompanied by squall, hail and heavy rains are likel  
Kerala Karshaka Jadha Opens to a Great Beginning / Video
Malappuram press club attack: RSS workers nabbed
Workers injured in mudslide at construction site
Turkey hits back at Trump, imposes tariffs on US goods worth $1.8 bn
 (Washington D.C, June 21, 2018):The Turkish government imposed tariffs of $266.5 million on $
Israeli Prime Minister's wife charged with fraud
Iran lawyer arrested after claiming executed man innocent
UK PM calls US images of migrant children 'deeply disturbing'
Yoga a unifying force, says Modi
 (DEHRADUN,June 21, 2018):Prime Minister Narendra Modi on Thursday heralded this year's main e
Kamal Haasan meets Sonia Gandhi
Inform people about govt's achievements: Khattar to BJP morchas
Leaving CEA job for very compelling reason; will leave by early Sep: Subramanian
Untitled Page
Rashtra Deepika LTD
Copyright @ 2017 , Rashtra Deepika Ltd.