The troubled steelmaker Bhushan Steel’s shares gained the most in nearly 4-and-a-half years on a Bloomberg report which said that there was no case of violation of Foreign Exchange Management Act (Fema) against the Bhushan Steel founder, Brij Bhushan.
As per the report, minister of state for finance Jayant Sinha in a reply to the parliament said that there was no case of violation of Fema Act against the Bhushan Steel founder.
In December, 4 members of Bhushan Steel’s promoter family including Brij Bhushan Singhal and Neeraj Singhal figured among 260 entities barred by Sebi for suspected money laundering and tax evasion activities through stock markets.
Brij Bhushan Singhal’s wife Uma Singal and Neeraj Singhal’s wife Ritu Singal were also barred from capital markets.
In an exchange release, the company had said, “The Individual concerned, will take necessary steps as may be available under law. However, we see no bearing of the said interim order on the operations/ performance of the company.”
The stock has lost 67% since the company’s managing director Neeraj Singhal was arrested in the Syndicate Bank bribery case. In YTD, the scrip has gained 13.9%.
Bhushan Steel owes more than R40,000 crore to banks. According to reports, last week a consortium of 51 lenders reviewed the progress of their action plan to recover the loans.
In a seperate announcement on Tuesday, Bhushan Steel informed the exchanges that STCI Finance had invoked 1.76 lakh shares of the company, representing 0.004% stake in the company.