Bhushan Steel's 9% stake encumbered with Edelweiss ARC; stocks tumble

Just a few days before the financial bids of Bhushan Steel are submitted, Edelweiss Asset Reconstruction Company said it has 9 per cent stake in the company encumbered with it against loans. 

The announcement was made after market hours, as the share price of Bhushan Steel fell sharply by 14.36 per cent to close at Rs 49.80 on Tuesday. 

Edelweiss ARC is one of the bidders of Bhushan Steel along with cash-rich Vedanta and a consortium led by JFE, JSW and Piramal which are getting ready to submit their financial bids by this weekend. The sharp fall in Bhushan Steel’s share price could have triggered the margin calls and led to the encumbrance of shares, said an analyst.