Simbhaoli Sugars hits record low on report of Rs 970 million loan defaults

The stock tanked 20% to Rs 13.50, also its record low on the BSE in intra-day trade, after media report suggested that the CBI filed Rs 970 million loan default case against the company.

Simbhaoli Sugars has tanked 20% to Rs 13.50, also its record low on the BSE in intra-day trade, after media report suggested that the Central Bureau of Investigation (CBI) filed Rs 970 million loan default case against the company.

The CBI on Sunday registered a case on a complaint from Oriental Bank of Commerce (OBC) against a private sugar company based at Simbhaoli in Hapur district of Uttar Pradesh for defaulting loan, ANI report suggested.

The case is registered against the chief managing director (CMD) of the company and others including directors, chief executive Officer (CEO), chief financial Officer (CFO) and unknown bank officials and other private persons, u/s 120-B r/w sec. 420 & 409 of the Indian Penal Code (IPC) and Sec. 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988 for causing a loss of Rs 1.1 billion (approximately) to the bank, added report. CLICK HERE TO READ REPORT

At 10:26 am; the stock was trading 17% lower at Rs 14.05 on the BSE, against 0.75% rise in the S&P BSE Sensex. The trading volumes on the counter surged multiple-fold with a combined around one million shares changed hands on the counter on the BSE and NSE so far.