Bhushan Steel rose 8.24% to Rs 57.15 at 14:49 IST on BSE on media reports that the company could be acquired by Vedanta.
Meanwhile, the S&P BSE Sensex was up 103.14 points, or 0.35% to 29,270.82.On the BSE, 3.75 lakh shares were traded in the counter so far, compared with average daily volumes of 1.78 lakh shares in the past one quarter. The stock had hit a high of Rs 58.05 and a low of Rs 53.05 so far during the day.
The stock hit a 52-week high of Rs 63.70 on 25 January 2017. The stock hit a 52-week low of Rs 34.30 on 29 March 2016.
The stock had underperformed the market over the past one month till 22 March 2017, falling 10.36% compared with 1.41% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 28.31% as against Sensex's 12.27% rise.
The small-cap company has equity capital of Rs 45.30 crore. Face value per share is Rs 2.
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According to media reports, lenders of Bhushan Steel are likely to start a competitive bidding process to sell the steel firm as they seek to recover some of the more than Rs 40000 owed by the steel producer. Vedanta is reportedly in talks with lenders to buy Bhushan Steel as it was keen to enter the steel sector. Vedanta may compete with JSW Steel for the bid.
The liberal dividend from Hindustan Zinc may give Vedanta the strength needed to acquire Bhushan Steel, reports added.
The board of Hindustan Zinc, a subsidiary of Vedanta, approved a special interim dividend of Rs 27.50 per share for the year ending 31 March 2017.
As on 31 December 2017, Vedanta held 274.31 crore shares, or 64.92% stake in Hindustan Zinc.
Bhushan Steel reported net loss of Rs 734.04 crore in Q3 December 2016 as against net loss of Rs 693.60 crore in Q3 December 2015. Net sales rose 47.12% to Rs 3611.13 crore in Q3 December 2016 over Q3 December 2015.
Bhushan Steel is one of the prominent players in the Indian steel industry. It has an existing steel production capacity of 5.6 million ton per annum.
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