New Delhi, May 15 (PTI) Tata Steel, whose bid for debt-ridden Bhushan Steel was approved by NCLT, would implement the resolution plan through its step-down subsidiary Bamnipal Steel Ltd. Bamnipal Steel would invest in the debt-ridden company and acquire control on closing date, Bhushan Steel Ltd said in a regulatory filing. "As per the terms of approved Resolution Plan, Bamnipal Steel Limited (BNPL), a wholly-owned subsidiary of Tata Steel, will initially subscribe to 72.65 per cent equity share capital of BSL at face value i.e. at Rs 2 per share, for an aggregate amount of Rs 158.89 crore," Tata Steel said in a filing to the BSE.

In an identical filing, Bhushan Steel confirmed the development saying Tata Steel shall implement the resolution plan through Bamnipal Steel Ltd, a wholly owned subsidiary of Tata Steel.

It further added: "Pursuant to the resolution plan, Bamnipal Steel would invest in, and acquire control of, the company on closing date." The principal bench of NCLT today has approved Rs 32,500-crore deal along with 12.27 per cent equity in Bhushan Steel offered by Tata Steel. Bamnipal Steel will subscribe to the equity share capital of Bhushan Steel on a preferential basis at a price of Rs 2 per share, and provide additional funds in the form of inter-corporate loans of which up to Rs 9,000 crore loans have an option of conversion into equity shares of BSL. "The aggregate funds received from this investment will be to the tune of Rs 35,132.58 crore, which will be used to settle the existing debts of the Company," it added.

This would also include the cost of corporate insolvency resolution process and all outstanding employee dues, but exclude operational creditors settlement Amount of Rs 1,200 crore as per the resolution plan.

"Upon implementation of the resolution plan, Bamnipal Steel will initially subscribe to approximately 72.6 per cent of the fully paid up equity share capital of the company," the filing said.

It further added: "The outstanding redeemable preference shares of the company would be purchased by Bamnipal Steel, and to the extent not transferred to Bamnipal Steel, would be redeemed by the company on the closing date, in terms of the resolution plan."

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