Vedanta, Welspun among 29 bidders in fray for Mittal Corp

Ryan M. Cason
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Vedanta, Welspun among 29 bidders in fray for Mittal CorpAnil Agarwal-promoted Vedanta, Welspun Corp, OP Jindal-led Jindal Stainless and Ares SSG Capital-backed Assets Care & Reconstruction Enterprises 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 PE fund Synergy MetalS & Mining Fund, founded by former ArcelorMittal executive Sudhir Maheshwari; tobacco maker Bommidala Enterprises; Jhawar family-promoted JICS Logistic; air cargo service provider GSEC; 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, KL Rathi Steels, SKM Steels, GR Sponge & Power, Sharp Ferro Alloys, Shree Yash Stainless and Jaideep Ispat & Alloys in partnership with Rajratan Global Wire, 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, Saarloha Advanced Materials, Laxcon Steels, Virender Jain and Ankit Jain, Zetwerk Manufacturing Businesses, Mohan Fabtex in partnership with VP Exim Infracon, Trishakti Power and Alucop India in partnership with Sanjay Agarwal, the people said.

The RP, Vedanta, Welspun and Jindal Stainless did not respond to ET’s request for comment. Last month, the Mumbai bench of the NCLT approved lenders’ proposal to appoint EY-backed Shailendra Ajmera as the resolution professional replacing Ashok Gulla.

The RP has admitted verified claims of ₹1,587 crore.

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