Bhushan Power And Steel Limited has bought 14.77% stake in Nova Iron And Steel Limited for Rs.26.05 Cr through open market transaction.

Bhushan Power bought 22.25 Mn shares at Rs.11.71 per share through bulk deal on BSE. It is also planning to acquire controlling stake in the company and plans to make an open offer in the long-term.

Transaction Reference: BSE

Nova Iron & Steel owns and operates iron and steel plants and also provides product separation, screening, and storage facilities. The company has a 1.5 lakh tonne sponge iron unit in Bilaspur district, Chhattisgarh. The company does not own any iron ore mines and buys the raw material from the market, mainly from Orissa.

For the FY2010, it posted revenue of Rs.144.77 Cr with net loss of Rs.4.23 Cr, while for quarter ending December 2010, its revenue was Rs.2.62 Cr with net loss of Rs.2.55 Cr.

Promoted by Sanjay Singal and Neeraj Singal, New Delhi-based Bhushan Power and Steel was formed consequent to the merger of Bhushan Industries Ltd (BIL), Bhushan Metallics Ltd (BML) and Decor Steel Ltd (DSL) in 1999. It manufactures crude steel and various upstream and ownstream value-added steel products.

It has seven steel plants in Chandigarh, Kolkata and Orissa with a combined capacity of 1.5 mtpa. It also has two non-coking coal blocks in Orissa and one coking coal block in Jharkhand.

Controlling stake in Nova iron will increase Bhushan Power's steel maufacturing capacity.

In April this year, Miglani Family, which jointly controls the Uttam Gavla Steels Ltd along with ArcelorMittal India,acquired Andhra Pradesh-based Bramhani Industries, which is building a 1.7 MTPA steel plant in Kadapa district of Andhra Pradesh.

Earlier this year, Sesa Goa acquired the assets of the upcoming steel plant of Bellary Steel and Alloys Ltd, put on the block by a consortium of lenders led by IFCI, for Rs.220 Cr, while last in last December, JSW Steel entered into a Rs 2,157-crore deal with Ispat Industries to acquire a 41.29% stake in the latter through preferential issue of fresh shares at a price of Rs 19.85 apiece.

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