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Electrosteel Steels Ltd (ESL) is likely to get a new promoter by September this year.
According to P Srinivas, Managing Director and CEO, United Bank of India (UBI), the “takeover process” has begun and by September a “logical conclusion” towards having a new promoter-investor is expected.
Kolkata-based UBI is a part of the 27-bank lenders’ forum, with State Bank of India (SBI) in the lead, which has opted for strategic debt restructuring (SDR) for ESL’s outstanding loan account.
“We are hopeful of takeover by an investor. The takeover process has started and by September this year some logical-end is expected,” he told reporters on the sidelines of a press conference.
Through SDR, the lenders’ forum has initiated the move to convert a part of its ₹9,600 crore borrowing of ESL into equity and pave way for management change over. UBI’s exposure in ESL stands at around ₹300 crore.
Reportedly, Tata Steel and a Singapore-based firm have offered to takeover.
Srinivas, however, refused to divulge names of the prospective investor.
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