Bhansali Engineering jumps after clearing outstanding dues

Bhansali Engineering Polymers rose 2.06% to Rs 171.20 at 10:33 IST on BSE after the company said it has cleared all outstanding dues amounting to Rs 216.50 crore.

The announcement was made after market hours yesterday, 27 March 2018.

Meanwhile, the S&P BSE Sensex was down 200.50 points, or 0.60% to 32,973.89.

On the BSE, 84,000 shares were traded in the counter so far compared with average daily volumes of 1.67 lakh shares in the past two weeks. The stock had hit a high of Rs 173.45 and a low of Rs 169 so far during the day. The stock hit a record high of Rs 217.40 on 16 January 2018. The stock hit a 52-week low of Rs 30.70 on 30 March 2017.

Bhansali Engineering Polymers said it was sanctioned working capital credit facilities amounting to Rs 216.50 crore, comprised of fund based credit facilities, non fund based credit facilities and credit conversion factor on exclusive basis from Allahabad bank, IFB Branch, Mumbai. The entire dues/outstanding out of the aforesaid credit facilities have been repaid by company on 27 March 2018, leaving no dues remaining, whatsoever.

Consequently, Allahabad Bank has issued no dues letter, shares pledge release letter to company, both dated 27 March 2018 resulting into release of all the prime and collateral securities charged in favour of Allahabad bank to secure their aforesaid credit facilities of Rs 216.50 crore, including exclusive equitable mortgage of land and building, hypothecation of plant & machinery and all other fixed assets of company related to its Abu Road plant and Satnoor plant, release of pledge of 5 crore equity shares belonging to promoter and promoter group of company and release of personal guarantee extended by its managing director, B M Bhansali, for securing the aforesaid credit facilities.

Net profit of Bhansali Engineering Polymers rose 849.67% to Rs 29.06 crore on 109.78% rise in net sales to Rs 257.93 crore in Q3 December 2017 over Q3 December 2016.

Bhansali Engineering Polymers is a petrochemical company. The company is engaged in the manufacture of acrylonitrile butadiene styrene (ABS) resins and styrene acrylonitrile (SAN) resins.

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