Bhushan Steel denies report about company sale

The company owes about $6 billion to a consortium of banks

Bhushan Steel Ltd said a TV news report that the company's lenders were looking to sell the company was "completely false and baseless".

Shares in Bhushan Steel rose as much as 10% to their daily limit on Tuesday after television channel ET Now reported the steelmaker's lenders had launched a sale process for the company.

"Bhushan Steel is a standard account. Hence, the question of lenders looking at selling it does not arise in this situation," the company said in a statement to Reuters.

Bhushan Steel, which owes about $6 billion to a consortium of banks, is under pressure after its managing director was implicated in a bribery case in August. The company has denied any wrongdoing and said it has been able to service loans.