As per initial plans, JFE Steel will keep over 50 per cent stake in the business and the rest will be divided between JSW Steel and Piramal Enterprises, the source said.
"JSW Steel along with JFE Steel and Piramal Enterprises will bid for Bhushan Steel. JSW Steel will keep minority stake with itself, some will be with Piramal and a majority say over 50-60 per cent will be with JFE Steel but the operational power will be with the steel maker," the source said while requesting anonymity.
Piramal Enterprises is the flagship firm of Piramal Group and its investments span across pharma, information management and financial services.
The insolvency resolution professional (IRP) has already extended the last date for submitting bids for Bhushan Steel till February 3, 2018 from January 25 earlier.
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Japanese JFE Steel also holds about 15 per cent stake in the Sajjan Jindal-run steel firm. The country's top steel maker has entered into technological collaboration with JFE Steel Corp to manufacture high strength and advanced high strength steel for the automobile sector.
According to the information on Bhushan Steel Ltd website, the company is the 3rd largest secondary steel producer in the country with an existing steel production capacity of 5.6 million ton per annum.
Tata Steel, JSW Steel and Vedanta are among players that have shown interest in Bhushan Steel.
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