According to media reports, Tata Steel (TATA) has emerged as the top bidder in the recent IRP (Insolvency Resolution Professional)-administered auction of two steel assets, i.e., Bhushan Steel Ltd (BSL), the listed entity promoted by Neeraj Singhal, and Bhushan Power and Steel (BPS), the unlisted entity promoted by Sanjay Singhal. Although details of the deals are still sketchy, it appears that TATA will own a 74% stake in the debt-laden (though reduced to INR362b) BSL and an 88% stake in BPS (INR182b debt), with commitment to bring additional capital (not sure if equity or debt or preference share) toward working capital and pending capex. On consolidation, net debt will increase by INR544b (or more) at the end of FY20, assuming that additional capital requirement for working capital and capex will be met from internal accruals once the interest burden comes down on refinancing.