Ratan Jindal-owned Jindal Stainless (JSL) may buy Ahmedabad-based Shah Alloys as part of a lenders-initiated exercise to revive the ailing Mumbai-based steelmaker. Shah Alloys was declared a sick company in September 2010 and lenders are now preparing a revival package. Jindal Stainless, the largest producer of stainless steel in India, has shown interest in buying Shah Alloys as well as group company SAL Steel.
JSL, which is also under corporate debt restructuring (CDR), will have to take approval from its lenders for the deal. Shah Alloys owes 600 crore to lenders Union Bank of India, SBI, PNB, IDBI, Axis Bank and Bank of Maharashtra, of which 500 crore is the principal amount and 100 crore is interest. Lenders have asked the promoters to come up with a proposal by mid-March for making the company profitable or accept sell-off options.
Jindal Stainless could invest about 100 crore in Shah Alloys as part of the deal and bring marketing expertise to improve the business of the company. This will increase Jindal Stainless’ capacity and get access to the western Indian market in which Shah Alloys operates.crackcrack
| Company Name | CMP |
|---|---|
| Tata Steel | 212.90 |
| JSW Steel | 1264.50 |
| SAIL | 176.55 |
| Jindal Stainless | 788.15 |
| APL Apollo Tubes | 2119.40 |
| View more.. | |
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