Photo: Reuters
Photo: Reuters

Bhushan Steel in talks with Monnet Ispat for stake purchase

Monnet Ispat is in talks with Bhushan Steel to sell its entire 35% stake in OSISL

Mumbai: Debt-ridden Bhushan Steel Ltd on Monday said it is in talks with Monnet Ispat and Energy for a stake purchase in Orissa Sponge Iron & Steel Ltd.

“…our discussion with Monnet Ispat regarding purchase of their stake in Orissa Sponge Iron & Steel Ltd (OSISL) is at very preliminary stage and management is looking into the viability/possibility in this regard and proper due diligence is also needed which will take about 45/60 days," the company said in a clarification to BSE on Monday.

On 21 August, Monnet group chief financial officer Ajay Bhat told business news channel CNBC-TV18 the company is in talks with Bhushan Steel to sell its entire 35% stake in OSISL, which owns iron ore reserves in the Odisha.

Monnet Ispat holds 35.17% stake in Orissa Sponge, is promoted by a Mohanty family which holds 29% stake in the company. Bhushan Energy, which is promoted by Bhushan Steel, also holds 13.7% stake in Orissa Sponge.

On Monday, shares of Bhushan Steel fell 11.7% to 50 on BSE and Orissa Sponge jumped 19.9% to 309.40, while the exchange’s benchmark Sensex fell 5.94% to 25,741.56 points.

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