CoC accepts bid of Tata Steel for Bhushan Steel

Steel major Tata Steel has been declared as the successful resolution applicant for Bhushan Steel. Committee of Creditors (CoC) of Bhushan Steel informed Tata Steel on Thursday.

The proposal is subject to regulatory clearance from NCLT and CCI, among others.

Bhushan Steel owes over Rs. 45,000 crore to banks. Tata Steel's offer includes upfront cash of Rs. 34,800 crore to the financial creditors and Rs. 1,200 crore to operational creditors of the company.

The deal, if it gets through, will provide a significant capacity addition to Tata Steel. Tata Steel Group has a crude steel capacity of 27.5 MTPA, as on March 31, 2017. It has operations in 26 countries. The group reported a consolidated turnover of Rs. 1,17,420 crore in FY17.

Meanwhile, the stock of Tata Steel was trading at Rs. 563.00 per share, down by 3.02 per cent and Bhushan Steel was at Rs. 41.65 per share, up by 5.44 per cent at 14:10 on Friday.