Bhushan Steel spikes as ArcelorMittal files EoI to acquire it

The share prices of Bhushan Steel witnessed a stark rise of about 20 per cent on the bourses on Monday as media reports suggested that the global steel major ArcelorMittal may acquire the company.
 
The LN Mittal-led ArcelorMittal has submitted an expression of interest (EoI) for Bhushan Steel, which is referred to the National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code, reported a national news daily.
 
Cheaper imports and a global overcapacity has largely marred the profitability of steel companies in India. Bhushan Steel has a significant presence in the auto steel segment, the company has recorded a capacity of 5.6 million tonnes and a debt of Rs. 44,478 crore.
 
Bhushan Steel breached its upper circuit of Rs. 69.80 per share on October 23. The stock surged by 19.93 per cent to hit its intraday high of Rs. 69.80 per share. The stock hit an intraday low of Rs. 64.05 per share.
 
Meanwhile, S&P BSE Sensex was trading at 32,458.62 level, higher by 0.21 per cent and NSE Nifty50 traded at 10,171.80 level, higher by 0.25 per cent on Monday. The stock touched its 52-week high of Rs. 102.80 per share on May 18, 2017 and its 52-week low of Rs. 38 per share on November 17, 2016 on BSE, respectively.