Bhushan Steel surges 30% in two days on lender nod for debt restructuring

At 1227 hours, the stock was up 10% at Rs 72.65, extending its previous day's 20% rally on the BSE.

Shares of Bhushan Steel has surged 10% to Rs 72.65, extending its previous day’s 20% rally on the BSE, after the company said about 70% of the banks have approved the loan restructuring scheme and sanction from rest of the banks is under process which is expected within a month or so.

In last month, the Joint Lenders Forum have already agreed to extend the loans of Bhushan Steel for a tenure of 25 years under the scheme announced by the Reserve Bank of India (RBI) and the approval of the scheme is under process with the respective banks.

A consortium of bankers led by Punjab National Bank has a total exposure of about Rs 30,000 crore in the company.

The stock hit a high of Rs 75.50 and has seen huge trading volumes. Till 1227 hours, a combined 6.39 million shares already changed hands against an average sub one million shares that were traded daily in past two weeks on the BSE and NSE.

Meanwhile, the stock touched a 52-week low of Rs 49 in June 5, 2015, had plunged almost 90% from its 52-week high of Rs 402 hit on July 10, 2014 on the BSE.