Mumbai: Shares of Bhushan Steel on Friday surged 20 percent after the company said the Joint Lenders Forum have approved its plan for a long-term restructuring of the loans.
The stock zoomed 19.92 percent to Rs 60.50 -- its highest trading permissible limit for the day on the BSE.
On the NSE, the scrip soared 19.96 percent to Rs 60.40, touching the upper circuit limit.
The company's market valuation rose by Rs 228.39 crore to Rs 1,370.39 crore.
On the volume front, 5.39 lakh shares of the company changed hands at the BSE and over 19 lakh shares were traded at the NSE during the day.
In a BSE filing, the company said: "On December 15, 2014, RBI announced a scheme for long-term structuring of loans in line with cash flows.
"The Joint Lenders Forum have agreed to extend loans of BSL for a tenure of 25 years under the said scheme. However, the respective authorities of the banks have to approve the scheme, which is under process with the respective banks."
The filing further said: "We have received the sanction from some banks only. However, the sanction from rest of the Banks are still awaited."
A consortium of bankers led by Punjab National Bank (PNB) has a total exposure of about Rs 40,000 crore in the company.
Besides PNB, the other banks include State Bank of India, Canara Bank, Bank of India and Dena Bank.
