Bhushan Steel rallies on plans to acquire Orissa Sponge Iron

NEW DELHI: Bhushan Steel Ltd rallied as much as 10.41 per cent in trade on Tuesday, after the company said that it is in advance discussions with promoters of Orissa Sponge Iron & Steel Ltd (OSISL) and Monnet Group to acquire the company and secure raw material for their ailing Odhisa plant.

The stock ended in green, up 6.38 per cent or Rs 3.95 at Rs 65.9.

Bhushan Steel Limited (BSL) plans to acquire a controlling 59 per cent stake in OSISL from its promoters, a Mohanty family and Monnet Group, said multiple sources directly involved, ET reported.

Little known OSISL has been a takeover target for long for its iron ore reserves.

The promoters own 29.05 per cent of the company which includes 5 per cent held by IPICOL, Odisha government's industrial development agency.

Monnet Ispat & Energy has 35.17 per cent shareholding. Bhushan Energy Limited - Bhushan Group's power arm also owns 13.17 per cent, as per the latest figures available.