Bhushan Steel shares sink 10%; hit lower circuit limit

PTI Updated - August 08, 2014 at 01:33 PM.

Shares of Bhushan Steel today slumped 10 per cent, extending its downtrend for the third consecutive day, after the CBI arrested Neeraj Singal, Vice-Chairman and Managing Director of the company, in connection with Rs 50 lakh bribery scandal involving Syndicate Bank.

Shares of Bhushan Steel tumbled 10 per cent to hit its lowest trading permissible limit for the day of Rs 219.35 on the BSE.

At the NSE, the stock plummeted 10 per cent to Rs 219.60 — its lower circuit limit.

In the previous two trading sessions, the stock had fallen by 20 per cent.

Tracking weakness in the stock, Bhushan Steel’s market valuation fell by Rs 3,655.48 crore to Rs 4,968.52 crore in just three days.

The CBI had yesterday arrested Neeraj Singal in connection with Rs 50 lakh bribery scandal allegedly involving CMD of Syndicate Bank S K Jain.

Singal had allegedly gone missing from his residence after the agency had carried out searches and did not appear on Saturday before the officials of the agency for examination.

On August 2, CBI had arrested six accused, including the Chairman-cum-Managing Director of Syndicate Bank, SK Jain, for allegedly taking bribe of Rs 50 lakh for increasing credit limit of some companies in violation of banking rules.

Published on August 8, 2014 08:03