Race for Essar Steel set to get hotter

The race for Essar Steel is set for a fresh twist with Sajjan Jindal-led JSW Steel indicating that it may throw its hat in the ring as an individual bidder.This comes even as reports suggest that the existing bidders – ArcelorMittal and NuMetal – are not unduly worried by the Supreme Court’s judgment asking them to clear all dues of Indian lenders within two weeks to become eligible for the bid. NuMetal is backed by VTB Group of Russia, while JSW Steel is a member of the Numetal consortium. JSW Steel, it is gleaned from informed sources, is interested in putting its own bid for Essar Steel in case the NuMetal consortium fails to secure eligibility or its bid is not accepted by the Committee of Creditors (CoC). If CoC calls a fresh a round of bids, JSW Steel will participate independently as it is always eligible for any asset on a standalone basis, said a source in the know of the development. “Given that JSW has not got any big asset under IBC like Tatas, its bid for Essar Steel makes sense,” said Paras Bothra, president, Equities, Ashika Stock Broking. However, a JSW spokesperson declined to offer any comments on the company’s interest in bidding for Essar Steel. ArcelorMittal is willing to settle its dues of Rs.7,000crore towards defaults by Uttam Galva and KSS Petron.