India’s Bhushan Steel is looking to sell a 5 percent stake to strategic investors for about 4 billion rupees ($86.2 million), the Economic Times reported on Friday, citing an unidentified source.

The funds will be raised at a price higher than the share’s close on
Thursday, valuing the firm at $1.7 billion, the newspaper said.

Bhushan Steel shares closed at 1,339.50 rupees on Thursday, valuing the firm at about $1.4 billion, according to Reuters data.

The company will begin talks with Indian and overseas firms shortly,
and one of the potential suitors could be Japan’s Sumitomo Metal, which
has already tied up with Bhushan for the latter’s upcoming steel
project in the eastern Indian state of Orissa, the paper cited the
source as saying.

Bhushan will use the funds from the sale for its expansion plans, the paper said.

The company could not be immediately reached for comment.

Source: Reuters

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