Bhushan Steel shares hit upper circuit to trade at Rs 53.85 on BSE on Monday as the company announced, in a stock market filing, that it has received bids from JSW Steel and Tata Steel. On February 7, the stock market had sought explanation from the debt-laden company with reference to the news dated February 07 after its stock had risen 16% on takeover bids from the two companies. The debt-laden company's reply on Monday was in response to the stock market's query on February 7. The Bhushan Steel scrip had closed at Rs 44.90 in the previous session. The share opened at Rs 51.90 on Monday, and hit a high of Rs 53.85 and a low of Rs 51.55 on BSE.
It is noteworthy that the stock had hit its 52-week low of Rs 39.35 barely a few days ago on February 6. Bhushan Steel is one of the 12 NPA (non-performing assets) cases referred by the Reserve Bank of India for the National Company Law Tribunal (NCLT) proceedings. The insolvency process was filed by the SBI, the lead bank of the consortium of lenders.
Despite rising by 20%, the scrip had hit its 52-week high.
Under regulation 30 of SEBI (listing obligations and disclosure requirements) regulations 2015, Bhushan Steel informs in a stock market filing that the company received resolution plans from Tata Steel, JSW Living Private and Employees of Bhushan Steel.
The stock market filing further intimates that the broad summary of these resolution plans was presented to the committee of creditors (CoC) on February 16.
"The resolution professional and its advisors will now review these plans so as to ensure that these plans are in coformity with the provisions of insolvency & bankruptcy code, 2016 and additional requirements as stipulated by the CoC in the process document. Once the complaint resolution plans are identified, another meeting of the CoC will be convened to present the complaint plans for the consideration of the CoC,"states the company.
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