This paves the way for acquisition of Electrosteel Steels by the local unit of London-listed Vedanta Resources. The process is likely to kick off shortly.
Electrosteel Steels fell 5 per cent to hit a low of Rs 2.85 on the BSE. Vedanta, on the other hand, rose 1.57 per cent to hit a high of Rs 294.20.
Electrosteel Steels became the first of the big defaulters to emerge from bankruptcy proceedings. The deal requires formal clearance from the Competition Commission of India and the Securities and Exchange Board of India, which is likely in the next couple of months.
The Vedanta Group said it would make all efforts to turn the stressed asset around at the earliest.