In a chat with Zee Business Managing Editor Anil Singvi today, Zee Business Executive Editor Swati Khandelwal said that expression of Interest has been seen in SAIL by investors as the company is preparing for divestment. SAIL's Salem (Tamil Nadu) and Bhadravati (Karnataka) steel plants are seeing some interest from the Bidders.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Swati said that after the expression of Interest in these 2 plants, the Government of India has received bids. Swati said the implication is that the 2nd stage of Divestment process is completed. Swati says that both the plants of SAIL are near completion of their divestment process and Government of India has got strong response for both these plants.

See Zee Business Live TV Streaming Below:

According to sources, both the plants have got strong responses and many private companies have shown good interest towards both these plants. Swati has said that the Metal sector has been in focus and there seems to be good growth opportunities in this sector going forward. Many companies are looking at these plants from a capacity expansion point of view.

See Zee Business Live TV Streaming Below:

Now, the Due Diligence process will start and in the bidding process, plants will be awarded to the best bidder. Government is extremely happy seeing the response they have got for these 2 plants. In fact, Government’s expectations have been met in terms of pricing.

Swati says that receiving Financial Bids is the final step towards the Divestment process. The awarding procedure is left and the Government has expressed that some private companies have bid for these plants. Swati said these divestment news can come in next few days.

Zee Business Managing Editor Anil Singhvi said that rather than doing the entire divestment of the company, SAIL is exiting plants which they want to. Investors were concerned about the debt of the company and according to the updates given by the company; debt has been reduced sustainably when compared to analysts expectations.

Singhvi said after Divestment happens in 2 plants, the Balancesheet of the company will become extremely strong. The profitability of the company will improve going forward. The Divestment procedure is the step in the right direction and this is the step in the right direction.  SAIL can further move up strongly going further, said Singhvi. The stock is out of Ban and can see good buying in Futures and Options as well.