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The stock of Bhushan Steel declined around 13 per cent in the earlier part of the week, but the entire loss was recouped once the news of Tata Steel’s winning bid for Bhushan Steel’s assets was announced on Thursday.
Tata Steel has made a ₹45,400-crore bid for the distressed steel company, Bhushan Steel, which is undergoing proceedings under the Insolvency and Bankruptcy Code (IBC). Investors of Bhushan Steel stand to benefit from the merger with the steel behemoth, Tata Steel, which can leverage its other businesses to keep Bhushan Steel up and running. Tata Steel stands to gain from the synergy offered by this deal. Bhushan Steel’s production capacity is 5.6 million tonnes, with plants at Sahibabad, Khopoli and Odisha. The Odisha plant, which is close to the Kalinganagar plant of Tata Steel, is expected to help Tata Steel consolidate its position in the East. Bhushan’s iron ore mine in Sundergarh, Odisha, with reserves of 92 million tonnes per annum will also help Tata Steel’s operations.
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