Bhushan Steel in talks with Monnet Ispat to acquire stake in Orissa Sponge Iron

25 August 2015

Bhushan Steel today said it is in talks with Monnet Ispat and Energy to acquire the company's stake in Orissa Sponge Iron and Steel.

In a BSE filing, Bhushan Steel said: "Our discussion with Monnet Ispat regarding purchase of their stake in Orissa Sponge Iron & Steel Ltd (OSISL) is at a very preliminary stage and management is looking into the viability/possibility in this regard and proper due diligence is also needed which will take about 45/60 days."

Meanwhile, OSISL in a BSE filing said: "We are the target company, we are not aware of any negations taking place in respect of the shares of the company."

OSISL is promoted by the Torsteel Research Foundation in India.

The company has been renamed as Orissa Sponge Iron & Steel Ltd on November 18, 2005.

As per its website, OSISL has also been allotted a coal block at New Patrapara, Talcher in 2004 along with a group of six other industries. OSIL's share in the total reserves is 114 million tonnes.

Shares of Bhushan Steel today fell by 11.66 per cent to settle at Rs 50 apiece on the BSE.

However, reacting to the reports on stake acquisition, shares of Orissa Sponge Iron & Steel today breached the upper circuit at Rs 309.60 apiece. It closed at Rs 309.40 per share on BSE, up by almost 20 per cent, on a day the Sensex took the bloodiest blow of its lifetime, crashing 1,624.51 points.