JSW Steel: CoC accepts Rs. 1,525 crore offer for Asian Colour

The Committee of Creditors (CoC) voted in favour of JSW’s Rs. 1,525 crore for the assets of debt-ridden Asian Colour Coated Ispat Limited, said news reports on Saturday. JSW Steel was the lone bidder for the assets.

Asian Colour owes close to Rs. 5,000 crore to banks. JSW Steel had initially offered Rs. 1,200 crore for the assets, which was found unsatisfactory by the lenders. The secured lenders of Asian Colour include State Bank of India (SBI) and Punjab National Bank, while unsecured lenders include Axis Bank. The company was referred to the National Company Law Tribunal (NCLT) by SBI and the insolvency proceeding started in July last year.

The company has galvanising and colour coating capacities of 1 MT and has operations in two locations in Haryana and Maharashtra. The company exports its products to Europe, Africa and Latin America. The deal will expand JSW’s colour coated steel capacity by nearly three times and increase the company's margin in the value added product segment.

Meanwhile, on Friday, the stock of JSW Steel closed at Rs. 276.50 per share, down by 0.31 per cent on BSE.