JSW, Liberty, Tata likely to bid for Usha Martin biz

At least three companies — JSW Steel, Tata Steel, and Liberty House — are understood to be evaluating a bid for Usha Martin, which is in the last lap of divesting its steel business.

Of the five firms in the fray, these three are potential bidders, source said. Bids are expected to be invited this month. JSW is in the process of doing a due diligence, which is expected to be completed in a few weeks, said Seshagiri Rao, company’s joint managing director and group chief financial officer. Rao, however, said the firm would evaluate a bid if it was a good opportunity.

A Tata Steel spokesperson said evaluating strategic growth opportunities was an ongoing activity. Liberty House declined to comment.

Usha Martin had put its steel business on the block to pare its debt, pegged at around ~45 billion. Sources close to the development said Arpwood Capital and SBI Capital Markets were given a joint mandate of finding buyers in June.

The Usha Martin board decided to set up a panel also to evaluate proposals and oversee the process of sale of the steel business.

If JSW Steel, Tata Steel, and Liberty bid for Usha Martin, it would be yet another firm that the three steelmakers would be vying for. The trio are locked in a battle for Bhushan Power & Steel, which is going through insolvency proceedings.