M&A Magazine

Bhushan Steel  was under  Corporate Insolvency Resolution Process  (CIRP) and on May 15, 2018, resolution plan was approved by the  NCLT . On May 18, 2018,  the company was acquired by  Bamnipal Steel Limited (BMSL),  a wholly owned subsidiary of  Tata Steel Limited  and later on renamed it to  Tata Steel BMSL Ltd . Company recently issued its first Annual report post acquisition. We tried to dive into the impact of the resolution plan to the financial, other stakeholders and other aspects through this article. Structuring of the deal As a part of resolution plan, BMSL paid Rs. 35,100 crores to the financial creditors of Bhushan Steels to settle their claims. Amount was infused by way of issue of equity shares and inter-corporate deposits. Detail break-up is as follows: Table 1: Resolution Plan Break-Up (All Figs in ₹ Lacs) Treatment Issue of Shares to BMSL (Rs. 2 each) 15,888.58 Treated as Inter-Corporate Deposit 34,...

Tata Steel has acquired Bhushan Steel (BSL) through its wholly-owned subsidiary Bamnipal Steel Ltd (BNL) through a resolution under the Insolvency and Bankruptcy Code ( IBC ) . Tata Steel has taken a controlling stake of 72.65% in BSL and paid the admitted corporate insolvency costs and employee dues, as required under IBC. Bhushan steel was one of the few resolved amongst 12 companies recommended by RBI under Insolvency and Bankruptcy Code . Tata Steel Ltd (TSL) is part of Tata Group and a public limited company engaged in the business of manufacturing steel and offers a broad range of steel products including a portfolio of high value-added downstream products such as hot rolled, cold rolled and coated steel, rebars, wire rods, tubes and wires. The equity shares are listed on BSE and on NSE. The market cap of the company is Rs 57,123 crores (approx.). Bamnipal Steel Limited (BNL) is a public limited company incorporated on January 19, 2018 formed as an SPV (Special Purpose...