 "Investors in Bhushan Steel lose over Rs 4,500 crore in one week")
Shareholders of Bhushan Steel have lost about Rs 4,600 crore in past one week, after a sharp fall in share prices since a bribery case came to light.
The company’s shares locked in lower circuit for fifth straight trading sessions, down 10% at Rs 178 on the National Stock Exchange (NSE). It plunged 53% in past one week from Rs 381 on August 5. The stock is currently trading at its lowest level since August 2009.
At 1155 hours, a combined 97,309 shares changed hands and there are pending sell orders for 2.77 million shares on NSE and BSE. Bhushan Steel’s total market capitalisation has declined to Rs 4,026 crore today, from Rs 8,630 crore during the period.
ALSO READ: BS Editorial: Bad loans and worse
On August 7, 2014, the Central Bureau of Investigation (CBI) arrested the company’s, Vice Chairman and Managing Director, Neeraj Singal, in connection with Rs 50 lakh bribery scandal involving Chairman and Managing Director of Syndicate Bank S K Jain.
Meanwhile, according to latest shareholding pattern data, promoters hold 71.29% stake in the company, of which 74.21% was pledged with financial institutions.
There were speculations that financiers are offloading the shares pledged by the promoters through open market, due to margin call.
The company’s shares locked in lower circuit for fifth straight trading sessions, down 10% at Rs 178 on the National Stock Exchange (NSE). It plunged 53% in past one week from Rs 381 on August 5. The stock is currently trading at its lowest level since August 2009.
At 1155 hours, a combined 97,309 shares changed hands and there are pending sell orders for 2.77 million shares on NSE and BSE. Bhushan Steel’s total market capitalisation has declined to Rs 4,026 crore today, from Rs 8,630 crore during the period.
ALSO READ: BS Editorial: Bad loans and worse
On August 7, 2014, the Central Bureau of Investigation (CBI) arrested the company’s, Vice Chairman and Managing Director, Neeraj Singal, in connection with Rs 50 lakh bribery scandal involving Chairman and Managing Director of Syndicate Bank S K Jain.
Meanwhile, according to latest shareholding pattern data, promoters hold 71.29% stake in the company, of which 74.21% was pledged with financial institutions.
There were speculations that financiers are offloading the shares pledged by the promoters through open market, due to margin call.