Sajjan Jindal-owned JSW Steel has submitted expression of interest to acquire stressed Asian Colour Coated Ispat asset in the insolvency-driven process.
The company was dragged to National Company Law Tribunal by State Bank of India and JM Financial to recover their dues of ₹1,690 crore and ₹1,000 crore, respectively.
This apart, another dozen creditors have also joined the case to recover their dues of ₹6,500 crore, sources said.
Of the ₹537-crore claim made by operational creditors, the resolution professional (RP) has accepted dues worth ₹152 crore and further details are sought on remaining claims.
NCLT has appointed Kuldip Bassi as RP for Asian Colour Coated. While confirming submission of EoI for Asian Colour Coated, a senior official of JSW Group refused to comment on valuation at this early stage.
Others in the fray
Apart from JSW Steel, sources said about 13 private equity players —including JM Financial Asset Management, Bain Piramal JV, Apollo Global and Liberty House — are believed to have submitted EoI for Asian Colour Coated.
JSW Steel, which is the only steel-maker in race for the company, will face tough competition from financial investors and private equity players. Lenders are expected to recover more than their dues given the good response, sources added.
Stressed cos in focus
JSW Steel’s interest in the company is part of its overall strategy to buy downstream facilities after recently clinching Monnet Ispat in insolvency-driven case even as its belated attempts to enter the race for stressed Essar Steel asset failed. The company is top contender for Bhushan Power and Steel, another downstream stressed asset.
Of the overall ₹45,000 crore brownfield expansion announced, JSW Steel plans to invest ₹5,000 crore to strengthen its downstream manufacturing capacity.
The company plans to protect its profit margin by reducing focus on commodity steel and enter into high margin alloy and special steel business.
Asian Colour Coated has plants at Bawal in Haryana on 54 acres and at Khopoli in Maharashtra on 15 acres and employs about 1,000 people at both the plants.
It has pickling capacity of 9.80 lakh tonnes, Cold Rolling 7.80 lakh tonnes, galvanising 6.70 lakh tonnes and Colour Coating 1.90 lakh tonnes.
The company caters to original equipment manufacturers, white good companies for producing automobile body and auto components.