BackBhushan Steel founders’ stake falls after lender takes over pledged shares
The founders' stake fell to 59.28% from 61.82% on invocation of a pledge
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Mumbai: Bhushan Steel Ltd founders’ stake has fallen to 59.28% from 61.82% on invocation of a pledge, the company said in a filing to the National Stock Exchange (NSE) on Tuesday.
Invoking a pledge means the lender transfers the pledged shares to itself when the borrower is unable to pay back its debt.
Bhushan Steel’s vice chairman Neeraj Singhal was arrested by the Central Bureau of Investigation (CBI) in August on allegations of bribing executives at Syndicate Bank Ltd to have the company’s borrowing limit raised.
The company’s debt stands at around ₹ 40,000 crore and 51 lenders have met to see how their exposure to the steel maker can be protected.
Bhushan Steel, which produces about 2.2 million tonnes of mostly flat steel that is used to make automobiles, has undertaken a massive greenfield expansion project in Odisha for an integrated steel plant.
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