Electrosteel Steels hits 5% upper circuit limit as Vedanta leads acquisition race

NEW DELHI: Shares of Electrosteel Steels hit upper circuit limit of 5 per cent in Tuesday's trade after ET reported that Anil Agarwal-led Vedanta has submitted the highest bid for the bankrupt company.

The bid was ahead of that of Tata Group's, said two people aware of the matter.

The other bidders were Renaissance Group promoted by Abhishek Dalmia and an overseas fund backed by Edelweiss, sources told ET.


Following the report, the stock rose 5 per cent to hit a high of Rs 6.75 on BSE. The scrip closed the day at the same level.

The Vedanta bid was said to be worth about Rs 4,500 crore, although one person said it may include an additional "sweetener", without providing further details. The Tata bid was said to be worth about Rs 3,500 crore. ET was unable to ascertain the offers made by the other two parties.

The process is being run in accordance with the Insolvency and Bankruptcy Code (IBC), PwC said in an email without elaborating. Dhaivat Anjaria of PwC is the resolution professional in charge of the Electrosteel insolvency process. Vedanta and Tata didn't respond to queries. The Vedanta and Tata bids are all-cash offers, ET reported.