SBI and ICICI BankBSE -0.80 % have emerged as the first port of call for these bidders as they believe guarantees or letters of comfort from the country’s biggest lenders will count in their favour, said the persons. Final, binding bids are to be submitted by end of the month, they said. “As many as 10-12 firms are likely to bid and we think that Essar itself would be one of the strong contenders,” said one of the persons.
Essar Steel faces claims of Rs 54,851 crore from financial creditors and Rs 22,914 crore from operational ones. With defaulting promoters barred from bidding unless they regularise accounts, it’s estimated the Ruias will have to arrange close to Rs 10,000 crore to be eligible to participate in resolution plan, said the person.The valuation of Essar Steel could rise after financial investors and distressed debt funds bought some of its loans from banks.