Shares of Bhushan Steel today surged 18.5 per cent after the company said a lenders' forum has approved its plan for a long-term restructuring of loans.
The stock soared 18.51 per cent to settle at Rs 71.70 on the BSE. During the day, it zoomed 20 per cent to Rs 72.60.
At the NSE, it jumped 18.21 per cent to close at Rs 71.40.
The stock had gained 20 per cent in previous session on Friday last.
In a BSE filing on Friday, the company said: "On December 15, 2014, RBI announced a scheme for long-term structuring of loans in line with cash flows.
The Joint Lenders Forum has agreed to extend loans of BSL for a tenure of 25 years under the said scheme. However, the respective authorities of the banks have to approve the scheme, which is under process with the respective banks."
The filing further said: "We have received the sanction from some banks only. However, the sanction from rest of the banks are still awaited."
A consortium of bankers led by Punjab National Bank (PNB) has a total exposure of about Rs 40,000 crore in the company.
Besides PNB, the other banks include State Bank of India, Canara Bank, Bank of India and Dena Bank.
