Bhushan Steel hit an upper circuit limit of 20% at Rs 69.80 at 11:03 IST on BSE after a media report suggested that the global steel giant, ArcelorMittal, showed interest in buying the Indian firm.
Meanwhile, the S&P BSE Sensex was up 85.74 points, or 0.26% to 32,475.70.On the BSE, 12.88 lakh shares were traded in the counter so far, compared with average daily volumes of 1.94 lakh shares in the past one quarter. The stock hit a low of Rs 64.05 in the intraday trade. The stock hit a 52-week high of Rs 102.80 on 18 May 2017. The stock hit a 52-week low of Rs 38 on 17 November 2016.
The stock had underperformed the market over the past one month till 19 October 2017, falling 17.68% compared with 0.03% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 10.39% as against Sensex's 1.13% rise. The scrip had outperformed the market in past one year, rising 32.73% as against Sensex's 15.14% rise.
The small-cap company has equity capital of Rs 45.30 crore. Face value per share is Rs 2.
According to the report, ArcelorMittal, the world's largest steel company, has joined the bidding race for stressed steel assets in the country by expressing interest to acquire Bhushan Steel. LN Mittal-led ArcelorMittal has reportedly submitted an expression of interest (EoI) for Bhushan Steel, which has been referred to National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code.
Reports suggested that Bhushan Steel owes nearly Rs 42000 crore to lender banks and was admitted into NCLT in July 2017.
Bhushan Steel reported net loss of Rs 1486.13 crore in Q1 June 2017 as against net loss of Rs 656.21 crore in Q1 June 2016. Net sales rose 23.51% to Rs 3649.79 crore in Q1 June 2017 over Q1 June 2016.
Bhushan Steel is India's 3rd largest secondary steel producing company with an existing steel production capacity of 5.6 million ton per annum.
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