The National Company Law Appellate Tribunal, on Friday, deferred the decision on JSW Steel’s bid for Bhushan Power and Steel due to the demise of former Prime Minister Atal Bihari Vajpayee.
The tribunal will now fix a fresh date for approving the proposal. JSW Steel had pipped Tata Steel at the post to emerge the highest bidder for the stressed Bhushan Power and Steel.
JSW Steel revised its bid from the earlier ₹19,000 crore to ₹19,700 crore on Monday, while Tata Steel surprisingly retained its initial bid of ₹17,000 crore. UK-headquartered Liberty House increased its bid by ₹500 crore to ₹19,000 crore, said sources close to the development. Tata Steel had emerged the winner in the first round of bidding. But the National Company Law Appellate Tribunal (NCLAT) directed Bhushan Power’s Committee of Creditors (CoC) to go for rebids after other firms wanted to increase their offers.
Tata Steel had appealed to the Supreme Court against the NCLAT decision to consider revised bids. However, the apex court refused to stay the NCLAT order.
The expected outcome in favour of JSW Steel will boost the case for UltraTech Cement, which is in a similar situation to acquire Binani Cement.
The acceptance of JSW Steel’s belated higher bid would work in favour of UltraTech Cement, said an analyst.