The two bidders of Sanjay Singhal led- Bhushan Power and Steel Ltd (BPSL), JSW Steel and Tata had the dispute regarding bidding procedure to which National Company Law Appellate Tribunal (NCLAT) directed both JSW Steel and Tata Steel to file written submissions. The offer put up by Tata Steel was Rs 17,000 crore for BPSL, making them the highest bidder in the initial round, while JSW had bid Rs 11,000 crore in the initial round.
In the legal process, Tata contested the lenders’ decision to allow JSW Steel to alter parameters of its bid. Meanwhile, JSW Steel got the opportunity to improve bid twice after the Tatas declared their highest bidder. The revised bid of JSW Steel was Rs 19,700 crore, thus succeeding with the two other bidders with its offer receiving lenders’ approval by a two-thirds vote. The third bidder was Sanjeev Gupta’s Liberty groups with Rs. 18,500 crore but after the deadline. Presently, JSW steel is unlikely to compete with Tatas in the race for acquiring BPSL with an offer of Rs 19,700 crores as now Tatas are unwilling to raise their original offer.
Recently, Tata Steel has done an Rs 4,525-crore deal to acquire Usha Martin’s steel unit near Jamshedpur, Outside the NCLT, Tata Steel recently did a Rs 4,525-crore deal to acquire Usha Martin’s steel unit near Jamshedpur. As Steel is a cyclical industry, specialists reported that Tatas would prefer to be prudent and focus first on consolidating their new acquisition before further exposure at the current stage.