JSW Steel will not revise its bid for Bhushan Power and Steel, but has appealed to the court for “complete protection” from the outcome of the investigations that are on against the promoters of the company, chairman Sajjan Jindal said on Thursday. The stressed asset’s resolution process has taken “unduly long”, he said.
“There is no plan to revise the bid whatsoever but what we do insist on is getting complete security from the outcome of the enquiries going on against the promoters,” Jindal told reporters on the sidelines of the annual general meeting (AGM) of JSW Steel on Thursday.
Last week, ET had reported that JSW Steel has sought relief from the NCLT against any outcome of the fraud investigations. Company joint MD Seshagiri Rao said that the specific relief sought is that while looking into the reported frauds, BPSL’s assets will not be accessed by any other authority or creditor through any intervention after it comes under JSW Steel.
A consistent drop in auto sales in the past few months as well as a general liquidity crunch in the wake of the NBFC crisis has led to a slowdown in the steel industry as well which has been exacerbated by high raw material costs and rising steel imports amid a global cooling of trade relations.
These recent headwinds have made many experts question whether the aggressive bids made for the stressed steel assets will still fetch the acquirers the expected returns.
