Sajjan Jindal-led JSW Steel has proposed to raise its offer for Bhushan Power and Steel Ltd (BPSL) in a bid to close the much-delayed acquisition at the earliest and take benefit of rising steel prices, multiple people in the know told CNBC-TV18.

As per three people in the know, JSW Steel reached out to Punjab National Bank-led lenders to BPSL last week and said it was willing to raise the bid by Rs 400-450 crore in order to make way for the deal to be closed at the earliest possible. JSW Steel had initially offered Rs 19,350 crore for the company under the bankruptcy process and was declared the highest bidder almost a year back, but the case has since been stuck in courts due to various litigations.

Banks, however, have not reached a consensus on the matter yet. Two senior executives from banks with exposure to BPSL told CNBC-TV18 that the steering committee of lenders was unable to take a call on the offer as some lenders still want to wait for the Supreme Court's final ruling in the matter.

The apex court is hearing a case filed by the promoter of Bhushan Power, Sanjay Singhal, where he claimed that JSW Steel should not have the right to profits earned by the company during the corporate insolvency resolution process (CIRP) and by allowing JSW to retain these profits, lenders were undervaluing the company.

While NCLAT ruled in JSW Steel's favour and allowed it to retain the EBITDA generated during this time, lenders had also filed an affidavit saying the redistribution should be as per the precedent set by Essar Steel case, where it was distributed between operational and financial creditors.

While lenders like SBI are in favour of accepting JSW Steel's offer and close the deal at the earliest, others like PNB have not agreed yet, CNBC-TV18 has learnt.

JSW Steel declined to comment on the story.

First Published:Dec 4, 2020 9:43 AM IST