Essar Steel insolvency case: Second round bids to be opened today

The second round of bids for Essar Steel will be opened in the presence of lenders on Monday, sources close to the development said.

The offers by three bidders — Numetal (minus Aurora Enterprises), ArcelorMittal, and Vedanta — will be opened in line with the September 7 order of the National Company Law Appellate Tribunal (NCLAT). Numetal was joined by JSW as an investor in a step-down subsidiary and ArcelorMittal with Nippon Steel.

In the second round, Numetal had dropped Aurora Enterprises, of which Rewant Ruia is the ultimate beneficiary, which made its bid eligible. Rewant Ruia is the son of Ravi Ruia, a promoter of Essar. According to the NCLAT order, ArcelorMittal has time till September 11 to clear its dues on account of defaulting firms, Uttam Galva Steels and KSS Petron, to become an eligible bidder for Essar. So, though bids will be opened on Monday, Arcelor will have time till Tuesday to make its second offer eligible.

JSW, Liberty House and Tata likely to bid for Usha Martin steel business

At least three companies — JSW Steel, Tata Steel, and Liberty House — are understood to be evaluating a bid for Usha Martin, which is in the last lap of divesting its steel business.

Of the five companies in the fray, these three are potential bidders, source said. Bids are expected to be invited this month.

JSW is in the process of doing a due diligence, which is expected to be completed in a few weeks, said Seshagiri Rao, company’s joint managing director and group chief financial officer. Rao, however, clarified the company would evaluate a bid if it was a good opportunity.

A Tata Steel spokesperson said evaluating strategic growth opportunities was an ongoing activity. Liberty House declined to comment.

Usha Martin had put its steel business on the block to pare its debt, pegged at around Rs 45 billion. Sources close to the development said Arpwood Capital and SBI Capital Markets were given a joint mandate of finding buyers in June.