Private equity firm BanyanTree Finance Pvt. Ltd has joined the race for Electrosteel Steels Ltd which is currently in bankruptcy courts. Banyan Tree will back Mideast Integrated Steels Ltd (MISL), part of Odisha-based Mesco Steel group, for the Electrosteel bid. MISL has submitted an expression of interest with the insolvency professional named by the National Company Law Tribunal (NCLT).
Mesco is among six bidders for Electrosteel’s assets. Others include Tata Steel Ltd, Dalmia Bharat Ltd, Electrosteel Castings Ltd, Srei Infrastructure Finance Ltd and Edelweiss ARC.
BanyanTree Finance is the local adviser to BanyanTree Growth Capital, which manages assets of $300 million across two private equity funds. In 2015, Banyan Tree Bank Ltd, Mauritius, the sister concern of BanyanTree Finance, had made a Rs40 crore debt investment in MISL—one of the largest integrated steel manufacturing companies in India.
Electrosteel Steels owes Rs. 10,274 crore to a consortium of banks led by State Bank of India (SBI).
