Usha Martin Ltd of Kolkata has attracted the interest of JSW Steel and Vedanta. Both have proceeded with memorandums of understanding (MOU’s) for initial due diligence. Usha Martin is a 1 million mt specialty steel plant in Jamshedpur and has a preliminary valuation of Rs 3,500-Rs 5,000 crore ($519-741 million). It has Rs 3723 crore in debt ($552 million).
According to reports, the firm fits well into JSW Steel’s strategy to acquire small distressed businesses in India, UK and US. Vedanta, on the other hand is seeking to expand into steelmaking with support from its iron ore reserves. It recently acquired ElectroSteel, though presently in a legal challenge from rival bidder Renaissance Steel.