Bhushan Steel in talks with Monnet Ispat for stake purchase1 min read . Updated: 24 Aug 2015, 06:23 PM IST
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.