Bhushan Steel (BSL) on Tuesday said that BSE and the NSE have approved reclassification of its erstwhile promoters as public shareholders following its takeover by Tata Steel under the new Insolvency and Bankruptcy Code. Erstwhile promoters — Neeraj Singal, Brij Bhushan Singal, Ritu Singal, Aishwarya Singal, Brij Bhushan Singal HUF and Bhushan Infrastructure Pvt Ltd — collectively hold 3.47 per cent of paid-up share capital of BSL.
Bamnipal Steel (BNPL), a step down subsidiary of Tata Steel, is the promoter of BSL, holding 72.65 per cent of the paid-up share capital. BNPL had completed the ₹35,200-crore acquisition of Bhushan Steel on May 18.
The acquisition is being financed through a combination of external bridge loan of ₹16,500 crore availed by BNPL and the balance through investment by Tata Steel in BNPL. The bridge loan availed by BNPL is expected to be replaced by debt raised at BSL over time. Incorporated in 1983, BSL is currently fifth largest integrated steel plant with a crude steel capacity of about 5.6 million tonne a year along with downstream facilities of cold rolled products of about 2 mtpa.
On Tuesday, shares of Bhushan Steel slumped 3.9 per cent at ₹33.3 on the BSE and those of Tata Steel slipped 1.64 per cent at ₹549.35.