Syndicate Bank graft case brings down value of Bhushan Steel’s promoter group shares by Rs 1,457 cr

Shares belonging to Bhushan Steel’s promoter and promoter group have lost Rs 1,457 crore of their value since the steel maker’s name cropped up in the Syndicate Bank bribery case on August 2.

The promoter and promoter group hold 16 crore shares, representing 71.29% of the total equity, as on June quarter, according to data available on the exchanges. As Bhushan Steel’s share price has fallen by 22% since the bribery case surfaced on August 2, the value of promoter and promoter group’s shares have fallen from Rs 6376.56 crore to Rs 4919.08 crore during the same period.

On Wednesday, the counter came under further selling pressure amid reports that Central Bureau of Investigation (CBI) had ordered an internal inquiry to examine why CBI failed to arrest Bhushan Steel’s chairman vice-chairman and managing director – Neeraj Singhal. The scrip slipped to a 3-year low of Rs 304.60, locked at lower circuit of 20%.

On August 2, the CBI arrested Syndicate Bank’s chairman SK Jain (now suspended), accusing him of taking Rs 50 lakh for extending the credit limit of Bhushan Steel and Prakash Industries.