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Bhushan Steel stock locked in upper circuit on Rs 35,000 cr takeover bid by Tata Steel, rises 19.93%

Bhushan Steel stock locked in upper circuit on Rs 35,000 cr takeover bid by Tata Steel, rises 19.93%

While the Bhushan Steel stock was locked in upper circuit of Rs 53.85 on BSE, the Tata Steel stock fell 6.04% to Rs 646.75 level on the report of bid for the steelmaker. The Bhushan Steel stock is down 22.74% or 15.85 points to 53.85 level since the beginning of this year.

The Bhushan Steel stock rose 19.82% after Tata Steel brought a surprise bid of Rs 35,000 crore surpassing rival JSW Steel's Rs 29,700 crore takeover offer for the ailing steel maker. Bhushan Steel has a debt of Rs 50,000 crore on its books of which it owes Rs 44,000 crore to lenders.

While the Bhushan Steel stock was locked in upper circuit of Rs 53.85 on BSE, the Tata Steel stock fell 6.04% to Rs 646.75 level on the report of bid for the steelmaker.

The Bhushan Steel stock is down 22.74% or 15.85 points to 53.85 level since the beginning of this year.

Around 27.39 lakh shares of the firm were being traded on BSE.

Bhushan Steel is a producer of cold-rolled steel products  with a steelmaking capacity of 5.6mn tonnes per annum.

Debt-laden Bhushan Steel reported widening of its net loss to Rs 1,607 crore for the quarter ended December 2017. The bankrupt firm, which is undergoing insolvency proceedings, had posted a net loss of Rs 743 crore in the same quarter a year ago.

The company's revenue from operations during October-December quarter of 2017-18 stood at Rs 4,407.71 crore as against Rs 4,094.73 crore in the same period a year ago, Bhushan Steel said in a BSE filing.

Bhushan Steel, one of the 12 non-performing accounts referred by the Reserve Bank of India for National Company Law Tribunal (NCLT) proceedings, owes an amount of Rs 44,478 crore to its lenders.