JSW Steel to acquire stressed steel cos

Though JSW Steel expressed interest to acquire some stressed steel-makers, there has not been much progress on that as banks appear not keen to take a haircut.

Speaking to Moneycontrol, JSW Steel’s Joint Managing Director and Group CFO Seshagiri Rao, said: “For any new investor to come and take over the entire debt (of a stressed steelmaker) is a remote possibility.”

He added: “A significant amount of haircut is involved to make these companies sustainable and profitable going forward. It may be a difficult decision for banks to take haircuts.”

JSW Steel has a capacity of 18 MT currently and is looking at expanding its capacity to 40 MT over the next decade.

Image Credit : images.financialexpress.com

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