Steel major ArcelorMittal has made a surprise bid for two Srei entities that are going through an insolvency process.

The company has submitted an expression of interest (EoI) for Srei Infrastructure Finance and Srei Equipment Finance — for which two bids have already been received by the resolution professional who is in charge of running the process.

The steel maker is not present in the infrastructure equipment lending space in which these two NBFCs, promoted by the Kanoria family of Calcutta, operate. It is also not part of the group of 13 entities which had submitted EoIs for the companies in April.

However, ArcelorMittal had its run-ins with Srei Group when Kanorias were at the helm of these two entities over the control of Odisha Slurry Pipeline Infrastructure.

The 253-km long pipeline which transports iron ore from mines in Dabuna to a pellet plant at Paradip in Odisha is a crucial supply chain infrastructure for ArcelorMittal-Nippon Steel (AMNS) steel plant in India. AMNS had acquired the Hazira steel unit from Essar Group through an insolvency process.

OSPIL went through a separate insolvency process than Essar, where AMNS’s Rs 2,358 crore bid for the pipeline company was approved by NCLT Cuttack and then by NCLAT, Delhi. While AMNS has control over the company and the asset, Kanoria entities continue to challenge the sale at the Supreme Court.

More than one source argued AMNS surprise move could be explained by the company’s desire to put the ongoing legal dispute at rest by acquiring the two Srei entities.

An AMNS spokesperson declined to comment.

Only two resolution applicants — a consortium of Varde Partners and Arena Investors, and entrepreneur Shon Randhawa and her partner Rajesh Viren Shah — have bid for the two Srei entities.

Surprise move

■ ArcelorMittal submits EoI for Srei Infrastructure Finance and Srei Equipment Finance

■ The firms have received two bids so far

■ AMNS is not present in the infrastructure equipment lending space