Asian stocks rose in morning trade on Monday, after the US’s S&P 500 extended its winning streak on Friday to six days. Markets in the Greater China region remain closed for the Lunar New Year holiday. Japan’s Nikkei 225 rose 1.13% in early trade, while the Topix index was up 1.2%. South Korea’s Kospi index gained 0.87%.
Back home, India share markets opened the day marginally down. The BSE Sensex is trading lower by 37 points while the NSE Nifty is trading lower by 47 points. The BSE Mid Cap index and BSE Small Cap index opened the day down by 1.6% & 0.4% respectively.
All sectoral indices have opened the day in red with metal stocks and PSU stocks witnessing maximum selling pressure. The rupee is trading at 63.91 to the US$.
In the news from the steel sector. As per an article in a leading financial daily, Tata Steel has emerged a frontrunner to acquire debt-laden Bhushan Power and Steel after lenders to the company decided that they would only consider Tata Steel’s offer of Rs 245 billion for further negotiations on Wednesday.
Reportedly, Tata and JSW steel were the only two bidders for the company.
Tata Steel’s offer includes an upfront payment to lenders of Rs 170 billion, a cash infusion in the company of Rs 70 billion to meet working capital requirements and a payout to operational creditors as well as employees.
Further, Bhushan Power and Steel was admitted to bankruptcy court in June last year.
The unlisted Bhushan Power and Steel has a capacity to produce 3.2 million tonnes per anum of steel and also owns a 700-megawatt captive power plant.
Reportedly, Tata Steel will have to approach the anti-trust regulator Competition Commission of India (CCI) for approval post its offer being accepted by the bankruptcy court. An acquisition of both Bhushan Steel and Bhushan Power and Steel could give the company an almost 50% share of the market for flat-steel products in India.
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