Bhushan Power & Steel: Iron Ore Sourcing Increased 19% in Dec'18

Bhushan Power & Steel - a major integrated steel maker with a capacity of 3.5 MnT has recorded iron ore sourcing at 0.33 MnT in Dec'18. The sourcing witnessed rise of 19% on monthly basis as against 0.27 MnT a month ago.

In FY'19 (Apr-Dec'18) the company's total sourcing witnessed at 2.66 MnT, with largest supplier being Rungta mines at 0.76 MnT.

Sourcing from Rungta mines increased sharply in Dec'18

Bhushan Power & Steel's iron ore sourcing from Rungta mines recorded at 0.13 MnT for the month, up 48% on monthly basis as against 0.09 MnT in Nov'18.

Essel mining supplies recorded at 0.11 MnT, up 87% against 0.06 MnT in last month.
Serajuddin mines supplies dropped significantly for the month at 0.01 MnT, down 72% M-o-M as compared to 0.05 MnT in Nov'18.

State owned miner- OMC mines recorded 5% fall at 0.06 MnT in Dec'18 as against being 0.07 MnT a month before.

Bhushan Power and Steel's iron ore sourcing: Dec'18 v/s Nov'18

Source: SteelMint Research
Quantity in MT
Provisional Data

Bhushan Power & Steel NCLAT Case Update

Bhushan Power and Steel is one of the companies undergoing bankruptcy proceedings.
The Bhushan Power and Steel auction initially received interest from 12 bidders, out of which JSW and Tata made to the final stage with former securing higher bids. UK based Liberty house submitted the bids post the deadline of 8th Feb, which was initially rejected by CoC (committee of creditors) but later accepted. Tata Steel emerged the highest bidder in first round of bidding. However, on 27 Jul'18, NCLAT (National Company Law Appellate Tribunal) directed Bhushan Power's Committee of Creditors (CoC) to go for rebids after the other firms expressed wish to increase their offers.

JSW Steel Ltd, Tata Steel Ltd and Liberty took part in the second round of bidding held on 13th Aug'18.

Later, the lenders submitted revised bids. Tata Steel alleged that lenders of Bhushan power and Steel Ltd. have violated NCLAT orders by permitting JSW Steel to revise bids post the deadline. However, in the voting held in Oct'18, around 90% of lenders of Bhushan power and Steel voted in favour of JSW Steel. In the next hearing conducted on 3rd Dec, JSW Steel reverted saying it can change the financial bids until the voting is closed. On 20th Dec, NCLAT (National Company Law Appellate Tribunal) reserved its order and directed JSW Steel and Tata Steel to file written submissions. The final decision for preferred bidder still remains pending.