Bhushan Steel was locked in 20% lower circuit at Rs 304.60 at 12:55 IST on BSE, with the stock resuming fall after a seeing a small recovery on Tuesday, 5 August 2014.
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 allegedly demanded Rs 50 lakh from Bhushan Steel in exchange for providing extensions on loans to the company that had defaulted on payments. Apart from SK Jain, CBI had taken eight others into custody on Saturday, 2 August 2014 including an alleged representative of Bhushan Steel, two employees from another private firm, and some middlemen, reports added. Shares of Bhushan Steel rose 0.69% to Rs 380.75 Tuesday, 5 August 2014.
Meanwhile, CBI Director Ranjit Sinha has 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. Neeraj Singhal has filed an anticipatory bail application in a local court which will come for hearing today, 6 August 2014.
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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