New Delhi: Bringing the Bhushan Power & Steel Ltd (BPSL) insolvency case to a resolution after a three-year-long delay, JSW Steel Ltd has closed the deal on Friday for Rs 19,350 crore. In a regulatory filing to the stock exchanges on Friday, JSW Steel said, "Pursuant to the implementation of Resolution Plan, that inter-alia included payment of Rs 19,350 crores to the financial creditors of BPSL and merger of SPV with BPSL, PSL holds 100 percent equity shares in BPSL."
"A sum of Rs 8,614 crores in aggregate was arranged in Piombino Steel Limited ("PSL"), currently a wholly-owned subsidiary of the Company, through a mix of equity issued to the Company, optionally convertible instruments (convertible to equity shares at par) issued to the Company and JSW Shipping & Logistics Private Limited ("JSLPL") and debt availed by PSL ("PSL Funds"). The PSL Funds included a total infusion of Rs 5,087 crores by the Company in the form of equity and optionally convertible instruments," said JSW Steel in the regulatory filing.
It added, "Of the PSL Funds, an amount of INR 8,550 crores were invested in Makler Private Limited ("SPV") through equity and convertible instruments. The SPV also availed short term loans."
JSW Steel told the bourses that the acquisition of BPSL is part of the company's inorganic growth strategy. "Through this acquisition, the Company will establish its presence especially in Flat Steel business in the eastern region of India," said the document. JSW Steel also said that it has obtained all the approvals required for Bhushan Power & Steel's acquisition, including a nod from the Competition Commission of India (CCI).
Bhushan Power & Steel has an integrated steel unit with liquid steel capacity of more than 2.5 MTPA in Jharsuguda, Odisha.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram & Twitter as well. Join PSU Watch Channel in your Telegram and follow us on Twitter to stay updated)