Hold Ispat Industries: Seshadri Bharathan

ET now spoke to Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd., on his call on Ispat Industries.

What is your sense on Ispat Industries?

I think Ispat has debts of around Rs 6500 crore and as per the debt restructuring plan, if there is any delay or any default in payment then the lenders have the option of converting loan to equity which would take their stake to 31%.

So it's a positive move because the stock will change, the company will change hands from weaker hands to stronger hands and we are seeing that this continues demand for steel products in India. So yes if ArcelorMittal steps in and buys into this company, it's a positive news for this company.