The battle for management control of Orissa Sponge Iron and Steel (OSIL) has intensified after Bhushan Energy, part of the Neeraj Singhal promoted Bhushan Steel group, acquired 4.09% stake from the open market at Rs 342.85 per share on March 3 and a further 0.65% the following day at Rs 359.95 per share.

The open market acquisitions push up the group's stake in OSIL from 14.85% to 19.95%.

Bhushan Steel also holds 35 lakh warrants of OSIL, which when converted will take its share in the company to 26.6%.

Nittin Johari, director (finance), Bhushan Steel said, "We will definitely convert the warrants as soon as we get them. We had bought 35 lakh warrants from Unitech when they sold 9.5% stake to us. However, OSIL hasn't transferred the warrants to us till now. We are asking them to transfer warrants to us so we could convert them into equity."

A person privy to the developments said on condition of anonymity that if Bhushan Steel manages to increase its share to 26% or more, it will get the power to veto any special resolution passed by the board of OSIL.

Bhushan Energy on March 3 announced an open offer for 20% stake in OSIL at Rs 330 per share, thereby surpassing Monnet Ispat's offer of Rs 310 per share for a 20% stake. The open offer by Bhushan Energy will commence on April 24 and close on May 13.

Monnet had made the offer through its group company Mounteverest Trading and Investment, which already holds 14.95% stake (29.9 lakh shares) in OSIL.

Monnet Ispat has signed a deal with the promoter of OSIL, PK Mohanty, to buy 27.1% stake at Rs 283 per share from Torsteel Research Foundation and TRFI Investments, the investment companies of PK Mohanty.

Following Bhushan Energy's open offer, Neeraj Singhal's estranged brother, Sanjay Singhal, the promoter of Bhushan Power, stands with the lowest offer of Rs 300 per share for a 26% stake. Bhushan Power doesn't hold any shares of OSIL at present. shubhashish@dnaindia.net

Shubhashish DNA