Tata Steel, which has a capacity of 27.5 million tonne, has a disproportionate skew towards flat steel products now while Usha Martin has an integrated steel-making business with predominantly long steel products which get better margins.
In one of the largest debt resolution plans outside the NCLT process, the Usha Martin board had signed an agreement with Tata Steel on September 22 to sell the Kolkata-based company's steel and wire rope business for a cash consideration of up to Rs 4,300-4,700 crore in a slump sale.
Usha Martin, which had a debt of over Rs 37.00 billion and a revenue of Rs 34.41 billion in the last fiscal year, had informed the exchanges that the sale would bring down the debt significantly. SBI is the lead banker for the group's debt.
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