In 2016, lenders had attempted to sell the company to a strategic buyer by converting its debt into 51% equity under the then prevailing strategic debt restructuring scheme approved by the Reserve Bank of India.
Anil Agarwal-promoted Vedanta, Welspun Corp, O P Jindal-led Jindal Stainless Ltd and Ares SSG Capital-backed Assets Care & Reconstruction Enterprises Ltd are among 29 applicants to have shown interest in acquiring distressed steel company Mittal Corp, which is undergoing insolvency proceedings, said two people aware about the development.
UK-based private equity fund Synergy Metal & Mining Fund, founded by former ArcelorMittal executive Sudhir Maheshwari; tobacco maker Bommidala Enterprises Pvt Ltd; Jhawar family-promoted JICS Logistics; air cargo service provider GSEC Ltd; Prudent Asset Reconstruction Company’s RKG Fund and road developer Kalyan Toll Infrastructure also submitted expressions of interest (EoIs), the people said.
Several other companies have requested an extension of time to submit EoIs, a third person said. To increase participation, the resolution professional may either invite EoIs again or extend the deadline, the person said.
Several mid-sized steel manufacturers, including Shyam SEL & Power, Rimjhim Ispat, K L Rathi Steels, SKM Steels Ltd, GR Sponge & Power, Sharp Ferro Alloys, Shree Yash Stainless Pvt Ltd and Jaideep Ispat & Alloy in partnership with Rajratan Global Wire Ltd, have also submitted EoIs.
In 2016, lenders had attempted to sell the company to a strategic buyer by converting its debt into 51% equity under the then prevailing Strategic Debt Restructuring scheme approved by the Reserve Bank of India. However, the account deteriorated since lenders were unable to find any buyer. It was subsequently admitted to NCLT following a petition from Punjab National Bank.
The other applicants are Bansal Wire Industries, DP Wires Ltd, Saaloha Advanced Material Pvt Ltd, Laxcon Steels Ltd, Virender Jain and Ankit Jain, Zetwerk Manufacturing Businesses Pvt Ltd, Mohan Fabtex Ltd in partnership with V P Exim Infracon Pvt Ltd, Trishakti Power Pvt Ltd and Alucop India Pvt Ltd in partnership with Sanjay Agarwal, the people said.
The resolution professional, Vedanta, Welspun and Jindal Stainless did not respond to ET’s request for comment.
Last month, the Mumbai bench of the National Company Law Tribunal approved lenders’ proposal to appoint EY-backed Shailendra Ajmera as the resolution professional replacing Ashok Gulla. The RP has admitted verified claims of Rs 1,587 crore.
Lenders say that the overwhelming response was due to the expectation that demand for steel consumption would rise owing to an increase in spending on infrastructure projects.
Mittal Corp is also among 15 shortlisted companies that would be transferred to the bad bank: National Asset Reconstruction Company Ltd. Bidders may have shown interest on expectations that the sale of the company would be fast-tracked once all the loans are consolidated at the bad bank.
Indore-based Mittal Corp, which has two steel making units, is engaged in production of cold rolled steel and coated steel products for automobiles, home appliances and construction.