Bhushan Steel’s Sales Volume Up 34% Q-on-Q
Mining News Pro - Tata Steel is successfully leading the integration of Bhushan Steel.

According to Mining News Pro -Tata Steel is successfully leading the integration of Bhushan Steel. Though production at the plant’s Meramandali facility in Odisha remained flat as the focus was on improving operational parameters like safety, maintenance and environmental practices.

But sales volume rose 34 % quarter-on-quarter (q-on-q) as improved marketing strategy helped to cut inventory.

Bhushan Steel’s total output during July-September stood at 1.05 million tonnes (mt) compared to 1.05 registered during Q1 sales, however, increased from 0.85 mt to 1.14 mt in the period under review.

Bamnipal Steel Limited (‘BNPL’), a wholly-owned subsidiary of Tata Steel has successfully completed the acquisition of controlling stake of 72.65 % in Bhushan Steel Limited (‘BSL’) in accordance with the approved Resolution Plan under the Corporate Insolvency Resolution Process (‘CIRP’) of the Insolvency and Bankruptcy Code 2016 (‘IBC’).

The admitted CIRP cost and employee dues have been paid, as required under IBC. Further, settlement of the amounts equivalent to Rs 35,200 crore towards financial creditors of BSL is being undertaken as per the terms of the resolution plan and corresponding transaction documents. Rs 1,200 crore will be paid to the operational creditors of BSL over a period of 12 months as per their admitted claims and as per the terms of the approved Resolution Plan.

The investment from BNPL in BSL has been done through a combination of equity of Rs 158.89 crore and inter-corporate loan of Rs 34,973.69 crore. Additionally, Rs 100 crore has been paid by BNPL to the financial creditors of BSL as consideration for novation of remaining financial debt of BSL.

The acquisition is being financed through a combination of external bridge loan of Rs 16,500 crore availed by BNPL and balance amount 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.

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