Bhushan Steel hits the roof after reports of nod to restructuring plan

Bhushan Steel was locked at upper limit of 20% at Rs 66 on reports the company said it has received shareholders' nod to restructure around Rs 30000 crore loans under a scheme of Reserve Bank of India.

Meanwhile, the S&P BSE Sensex was down 75.41 points or 0.27% at 27,612.31.

On BSE, so far 1.99 lakh shares were traded in the counter as against average daily volume of 1.75 lakh shares in the past one quarter.

The large-cap steel manufacturer was locked at a high of Rs 66 in intraday trade. The stock hit a low of Rs 63.10 so far during the day. The stock hit a 52-week high of Rs 402.50 on 8 July 2014. The stock hit a 52-week low of Rs 49 on 5 June 2015.

A consortium of bankers including Punjab National Bank, State Bank of India, Dena Bank and Bank of India has a total exposure of around Rs 30000 crore in the company, report said.

Nittin Johari, CFO at Bhushan Steel quoted by media as saying that about 70% of the lenders have approved the scheme and by the end of this month it should get closed. The sanctions from few banks are awaited and as soon as the nod is given the plan will begin. The company has a four-year moratorium on principal repayment. After this, there will be a 21-year repayment period, with a provision to refinance every five years, Johari reportedly added.

Meanwhile, with reference to the news item titled "Lenders clear Rs 30,000 cr debt rejig for Bhushan Steel", Bhushan Steel has clarified that the company has already submitted its clarification vide letter dated 5 June 2015 that the joint lenders forum have agreed to extend the loans of the company for a tenure of 25 years under the scheme announced by RBI and the approval of the scheme is under process with the respective banks. Presently about 70% of the banks have approved the scheme and sanction from rest of the Banks is under process which is expected within a month or so, company added.

Bhushan Steel reported net loss of Rs 360.77 crore in Q4 March 2015 compared with net loss of Rs 19.57 crore in Q4 March 2014. Total income fell 3.8% to Rs 2427.01 crore in Q4 March 2015 over Q4 March 2014.

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