Why are Steel stocks falling?

Why are Steel stocks falling?

One of the reasons for the street’s disappointment was the slow pace of debt reduction in the company. It was the sharp fall in global steel prices that caused the bigger dent to the steel maker’s stock price. Check out the latest news, analysis and updates on Business Insider.

Is Bhushan Steel a good buy?

Tata Steel buying Bhushan Steel is a Good Start, But a Long Journey Awaits. This means banks will have to take a haircut of Rs 20,851 crore (Rs 56,051 crore minus Rs 35,200 crore) or 37\%, on the loans they had given to Bhushan Steel. 3) The banks have also been offered a 12.27\% stake in Bhushan Steel.

What will happen to Tata Steel BSL shares?

The Board of Tata Steel on 23 November 2021 has approved allotment of 1,82,23,805 fully paid-up equity shares of Tata Steel of face value Rs 10 each, to eligible shareholders of Tata Steel BSL (TSBSL) (as on the record date of 16 November 2021 ), in the share exchange ratio of 1:15 as provided in the Composite Scheme …

What is the latest news of Tata Steel BSL?

Tata Steel BSL records PAT of Rs 1,837 crore Tata Steel BSLs consolidated net profit surged to Rs 1,837.03 crore in Q2 FY22 from Rs 341.71 crore in Q2 FY21.

Why is steel down today?

Domestic steel prices down as iron ore, coking coal prices fall. Coking coal prices, too, have come down from their October peak due to factors including China’s decision to lift restriction on coal mining amid a power crisis, restricted buying from many Asian countries and improved supply from mines across the world.

Why did Tata Steel Buy Bhushan Steel?

It can use that ore for Bhushan Steel’s plants, thus generating higher profits from the same assets. ii. Sustaining dominance in Auto Sector: The acquisition of Bhushan would strengthen Tata’s foothold in the auto-grade steel industry and give it greater access to the Northern market.

Is Bhushan Steel merger with Tata Steel?

The merger of the company is as per sanction of India’s National Company Law Tribunal, the company said. In 2018, Tata Steel Limited acquired Bhushan Steel Limited (BSL) through the bankruptcy resolution process and renamed the company Tata Steel BSL Limited.

Should I buy Tata Teleservices share?

As on 16th Dec 2021 TTML Share Price closed @ 180.10 and we RECOMMEND Strong Buy for LONG-TERM with Stoploss of 23.63 & Strong Buy for SHORT-TERM with Stoploss of 49.18 we also expect STOCK to react on Following IMPORTANT LEVELS.

Is Tata Steel BSL merger news 2021?

Tata Steel Limited will issue and allot 1 fully paid-up equity share of face value Rs 10/- each of Tata Steel, for every 15 equity shares of the face value of Rs 2/- each held in Tata Steel BSL. The record date has been kept as November 16, 2021, for the purpose of determining the shareholders of Tata Steel BSL.

Will steel prices go up in 2021?

Price forecast up The global average in 2021 has mainly been boosted by the US steel prices, which have been breaking historical records until the time of writing. Global steel prices have, thus far, averaged $959 a tonne since the beginning of the year, against the 2020 average of $582.

What happened to Bhushan Steel?

The CBI probe claimed that the then Chairman of Bhushan Steel, S.K.Jain, bribed bank officials to grant loan extension and had defaulted more than 100 crores. The stock prices fell drastically as stakeholders panicked and looked for immediate relief. By 2014, the company officially entered the bankruptcy court.

What is the Bhushan Steel NPA crisis?

Bhushan Steel is part of the “NPA crisis”, shorthand for Rs 8-lakh crore worth of loan defaults or Non-Performing Assets, that have choked India’s banking system and pushed lending, the lifeblood of the economy, to its lowest point in 20 years. Company promoters blame these defaults on a global recession, poor regulation and sheer bad luck.

Does time favour Bhushan Steel?

But in the case of Bhushan Steel, it looks like; even time favoured them. To be precise, the time during which they had set foot in the industry was a period where the steel business was at its peak, and there was a lot of optimism surrounding it as well.

Who is Brij Bhushan Singal?

In 1987, Brij Bhushan Singal and his sons – Neeraj and Sanjay – acquired an ailing steel factory in Sahibabad, at a time when steel was dominated by state-owned companies. The group grew quickly by importing sophisticated Japanese machinery to make steel for India’s nascent automobile industry.