Bhushan Steel hit a lower circuit limit of 5% at Rs 101.35 at 13:04 IST on BSE, with the stock extending its recent steep slide.
Meanwhile, the BSE Sensex was up 70.82 points, or 0.27%, to 26,630.97.
On BSE, so far 16,000 shares were traded in the counter, compared with an average volume of 56,727 shares in the past one quarter.
The stock was currently frozen at a 52-week low level. The stock hit a 52-week high of Rs 504 on 11 November 2013.
The stock had underperformed the market over the past one month till 27 August 2014, falling 72.98% compared with 1.66% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 74.44% as against Sensex's 8.19% rise.
The small-cap company has an equity capital of Rs 45.30 crore. Face value per share is Rs 2.
Shares of Bhushan Steel have tumbled 74.33% from Rs 394.85 on 1 August 2014. Earlier this month, the Central Bureau of Investigation (CBI) arrested Bhushan Steel's Vice Chairman and Managing Director Neeraj Singal in the Rs 50 lakh bribery scandal involving Syndicate Bank chairman S K Jain, who is also in custody.
Meanwhile, as per recent media reports, lenders to Bhushan Steel have effectively taken charge of the company, and asked for three director posts on the company's board (which will then have 14 members) apart from conducting a forensic audit of the company's books and a concurrent one of its cash flows. The first audit will find out whether the company hid something or has indulged in any malpractice, while the second will simply keep track of its cash.
A consortium of 51 lenders has an exposure of around Rs 40000 crore to Bhushan Steel and met on 18 August 2014 to decide on ways to protect their exposure, reports suggested.
Bhushan Steel reported a net loss of Rs 141.63 crore in Q1 June 2014 compared with net profit of Rs 76.26 crore in Q1 June 2013. Total income rose 12.41% to Rs 2803.72 crore in Q1 June 2014 over Q1 June 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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