IFCI recovers Rs 280 cr from Bhushan Steel, allotted over 5.79 lakh shares

New Delhi: Infrastructure lender IFCI has recovered Rs 280.30 crore and has been allotted over 5.79 lakh equity shares of debt-ridden Bhushan Steel (BSL), which has been acquired by Tata Steel, under the insolvency process.

"IFCI as one of the financial creditors to BSL had filed its claim with the resolution professional which was duly accepted. Under the resolution plan (RP) envisaging payment of Rs 35,200 crore to all the financial creditors, IFCI has since received its share of Rs 280.30 crore," IFCI said in a BSE filing.

Further, as part of the RP, IFCI said it has also been allotted 5,79,277 fully paid up equity shares of BSL having face value of Rs 2 per share.

The company, however, did not share the total outstanding amount. In June last year, RBI's internal advisory committee (IAC) identified 12 accounts, each having more than Rs 5,000 crore of outstanding loans and accounting for 25 per cent of total NPAs of banks. Tata Steel had won the bid to acquire debt-laden Bhushan Steel in an insolvency auction.

IFCI's standalone net loss widened to Rs 566.64 crore in the last quarter ended March 2018, due to higher provisioning for bad loans and write off.

There was a write off and provisions for bad assets to the tune of Rs 1,111.18 crore during the March quarter, more than double from Rs 499.63 crore in the year-ago period. Shares of IFCI were trading 5.64 per cent higher at Rs 17.80 apiece on BSE.