Bhushan Steel rose 13.02% to Rs 48.60 at 11:17 IST on BSE on reports that the company's move to sell its assets to meet debt obligations may fetch it Rs 3000 crore.
Meanwhile, the BSE Sensex was down 138.37 points, or 0.53%, to 25,979.48.
On BSE, so far 8.21 lakh shares were traded in the counter, compared with an average volume of 89,641 shares in the past one quarter.
The stock hit a high of Rs 50.75 and a low of Rs 45 so far during the day. The stock hit a 52-week high of Rs 103.30 on 3 March 2015. The stock hit a 52-week low of Rs 40.50 on 9 November 2015.
The stock had underperformed the market over the past one month till 2 December 2015, falling 1.83% compared with 1.66% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 14.43% as against Sensex's 2.61% rise.
The small-cap company has an equity capital of Rs 45.30 crore. Face value per share is Rs 2.
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According to reports, Bhushan Steel is in the process of getting Rs 3000 crore from sale and lease-back arrangements for two of its assets in Odisha.
With debt of Rs 40000 crore, Bhushan had become a worry for banks. In August 2015, the lenders decided to appoint an audit company to monitor the cash flow daily and an independent engineer to monitor operations. In all, 35 banks have a combined exposure, in both working capital loans and term loans, reports added.
The sale and lease-back deals were also mooted by the lenders. Though the deal looks attractive, Bhushan would still have to pay lease rent for the assets. These are long-term leases of 14 to 15 years, reports said.
Bhushan Steel reported net loss of Rs 732.79 crore in Q2 September 2015 as against net loss of Rs 297.19 crore in Q2 September 2014. Net sales rose 10.57% to Rs 3038.70 crore in Q2 September 2015 over Q2 September 2014.
Bhushan Steel is a globally renowned one of the leading prominent player in steel industry. The company is now India's 3rd largest secondary steel producer with an existing steel production capacity of 2 million tones per annum's (approx.).
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