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Non-resident Indian billionaire Anil Aggarwal-led Vedanta is eyeing a minority stake in debt-laden Electrosteel Steels Ltd, sources have said.
“There has been initial talks in this matter between Vedanta and Electorsteel, however nothing is finalised yet,” a person privy to the matter said.
When contacted, a Vedanta spokesperson said, “We are a London-listed company. We have our own limitations and we cannot comment on this now.”
Electrosteel has been under corporate debt restructuring scheme since 2013 with a debt of more than Rs 6,000 crore.
A source in Kolkata-based Electrosteel also confirmed that discussions were underway for a deal with Vedanta.
“A round of discussions on this matter has already happened. Recently, the promoters group infused some money into the company and the rest is likely to be raised by the minority stake sale which will help to pare the debt,” he said.
The company has a small unit in Bokaro with half a million tonne production capacity.
While a spokesperson for Electrosteel could not be reached despite repeated attempts, the company in a recent regulatory filing has denied any discussion for sale of the company.
The stock exchanges had sought clarifications from Electrosteel Steels following media reports that Tata Steel and Vedanta were looking to buy the company due to its debt burden.
In its reply to the stock exchanges, Electrosteel had denied “any action/discussion as contemplated in the media report with regard to sale of the company”.
When contacted, a Tata Steel spokesperson refused to comment.
Earlier in January, Agarwal had said he wants to invest over $30 million in India if the investment climate remains positive.
