Diversified conglomerate Tata Group has shown interest in investing in Electrosteel Steels Ltd, Kolkata-based firm said.
Besides a Singapore-based financial investor has also evinced interest in the firm, Electrosteel Steels said in a BSE filing.
The firm has been under corporate debt restructuring scheme since 2013 with a debt of more than Rs 6,000 crore.
“…Electrosteel Steels has now informed BSE that the lenders/company has now received indicative term sheets for investment in the company from Tata Group as well as from a financial investor based in Singapore,” the filing added.
Reacting to the news, shares of the firm breached the upper circuit. The shares were trading higher by 11.42% at Rs 4.20 apiece on BSE in afternoon trade.
The filing further said: “The bankers…as well as the company are exploring the proposals of investment.” In April, there were reports that Anil Aggarwal-led Vedanta is eyeing a minority stake in debt-laden firm and there have been initial talks in this matter between Vedanta and Electorsteel.
However, Electrosteel in a reply to stock exchanges, denied “any action/discussion as contemplated in the media report with regard to sale of the company”.
PTIB
According to the firm’s website, Electrosteel Steels has a 2.5 million tonnes per annum (MTPA) greenfield integrated steel plant near in Bokaro.