Bhushan Steel was locked in 20% lower circuit at Rs 243.70 at 14:41 IST on BSE, with the stock extending recent fall.
Meanwhile, the BSE Sensex was up 102.09 points, or 0.4%, to 25,767.36
On BSE, so far 45,963 shares were traded in the counter with pending sell orders of 6.32 lakh shares at lower circuit. The stock has an average daily volume of 60,145 shares in the past one quarter.
The stock opened with a downward gap, declining by the maximum 20% daily circuit and remained locked at the 20% level at Rs 243.70 so far during the day, which is also 52-week low for the counter. The stock had hit a 52-week high of Rs 504 on 11 November 2013.
The stock had underperformed the market over the past one month till 6 August 2014, falling 24.29% compared with 1.14% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 31.96% as against Sensex's 14.03% rise.
The mid-cap company has an equity capital of Rs 45.30 crore. Face value per share is Rs 2.
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Shares of Bhushan Steel had dropped 4.23% to Rs 378.15 on Monday, 4 August 2014, after the Central Bureau of Investigation (CBI) on Saturday, 2 August 2014, arrested the now-suspended Chairman-cum-Managing Director of Syndicate Bank SK Jain after he had allegedly demanded a bribe of Rs 50 lakh from Bhushan Steel to not convert the company's outstanding loan into a Non Performing Asset (NPA). As per reports, Bhushan Steel had taken a loan of Rs 100 crore from Syndicate Bank while Prakash Industries had taken a loan of Rs 120 crore. Both companies were desperate to avoid their loans being declared NPAs for default in repayments. Shares of Bhushan Steel rose 0.69% to settle at Rs 380.75 on Tuesday, 5 August 2014. The stock fell by maximum permissible daily limit of 20% to Rs 304.60 on Wednesday, 6 August 2014.
CBI Director Ranjit Sinha had reportedly ordered an internal inquiry after his team did not arrest Bhushan Steel vice-chairman Neeraj Singhal during searches at his residence in the Syndicate Bank bribery case, despite clear instructions to pick him up. Neeraj Singhal is on the run from the time of the raid and the CBI has been trying to trace him since, so that he can be arrested, reports added.
Meanwhile, a Delhi court on Wednesday, 6 August 2014 reportedly dismissed the anticipatory bail plea of Neeraj Singhal in connection with the Syndicate Bank bribery case.
In view of the ongoing development and the possible impact of the same on the credit risk profile of Bhushan Steel, rating firm CARE on Wednesday, 6 August 2014 placed the ratings on Credit Watch. CARE is in discussion with Bhushan Steel on the ongoing developments and would take necessary action when greater clarity emerges, a press release issued by CARE indicated.
Bhushan Steel reported net loss of Rs 19.57 crore in Q4 March 2014 as compared to net profit of Rs 280.21 crore in Q4 March 2013. Net sales fell 10.9% to Rs 2399.73 crore in Q4 March 2014 over Q4 March 2013.
Bhushan Steel is one of the leading prominent player in steel industry. The company is now India's 3rd largest secondary steel producer company with an existing steel production capacity of 2 million tonne per annum (approx.).
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