Bhushan Steel shares soar 20% after banks okay loan rejig

Shares of Bhushan Steel soared 20 <g data-gr-id="27">per cent</g> on Thursday as the company received lenders' approval for long-term restructuring of about Rs 30,000 crore loans under a scheme of Reserve Bank of India. The stock zoomed 20 per cent to Rs 66 - its highest trading permissible limit for the day - on the BSE. At the NSE, the stock jumped 19.96 per cent to Rs 65.80. The company's market value rose by Rs 249.97 crore to Rs 1,494.97 crore. The Joint Lenders Forum (JLF) has agreed to extend the loans of BSL for a tenure of 25 years under the RBI's scheme for long-term structuring of loans in line with cash flows.

"About 70 <g data-gr-id="16">per cent</g> of the lenders have approved the scheme and by the end of this month it should get closed", Bhushan Steel Chief Finance Officer (CFO) Nittin Johari said. Johari said, "The sanction from few banks are awaited and as soon as the nod is given the plan will begin." A consortium of bankers led by Punjab National Bank (PNB) has a total exposure of about Rs 30,000 crore in the company. Earlier Bhushan Steel Ltd (BSL) received lenders’ approval for long-term restructuring of about Rs 30,000 crore loans under a scheme of Reserve Bank of India. The Joint Lenders Forum (JLF) has agreed to extend the loans of BSL for a tenure of 25 years under the RBI’s scheme for long-term structuring of loans in line with cash flows.