Visa Steel, which went into a corporate debt restructuring program 2 months ago, might try to bring in a strategic investor in its core long steel business.
Mr Vishal Agarwal MD of Visa Steel said that "In the special steel business, we are open to the idea to have a strategic investor." He did not give details but said the company would evaluate as it goes forward.
According to company and industry sources, the company is looking to align with an iron ore company, so that it could secure raw material supplies, given the shortage of it in the market.
Steel deal
1. Visa Steel went into a corporate debt restructuring program 2 months ago
2. The company has three main businesses ferrochrome, coke oven battery and special steels
3. The company is looking to align with an iron ore company, so that it could secure raw material supplies, given the shortage of it in the market
At a board meeting on September 28th, the company considered and approved a financial restructuring package finalized by its CDR Empowered Group.
Mr Agarwal said that the company had INR 2,000 crore of long term debt, which it was trying to rework.
He said that "Currently, the challenge is to resolve the iron ore issue around the existing steel business before looking at new capacities."
Currently, Visa Steel has a fully integrated 500,000 tonne special steel plant in Odisha. The plant includes a 400,000 tonne coke oven plant, hived off in a company called Visa Coke Ltd. Last month, it sold 49% stake in this hived off company to New York listed SunCoke Energy for INR 368 crore.