IFCI invokes one lakh shares of Bhushan Steel

NEW DELHI: Financial institution IFCI has invoked one lakh shares of Bhushan Steel that were pledged by the debt-ridden company's promoter Neeraj Singal.

Singal is also Vice Chairman & Managing Director. In a filing to the BSE, Bhushan Steel said that company's one lakh shares, that were pledged by Singal, have been invoked by IFCI Ltd.

As per the filing, 36,732 shares were pledged on October 7 and 27,330 on October 9. Again 5,059 shares were pledged on October 10, followed by 30,879 on October 13.

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

Meanwhile, the company has denied that lenders are looking at selling it.

"Bhushan Steel is a standard account. Hence, the question of lenders looking at selling it does not arise in this situation," a company spokesperson said reacting to media reports.

Shares of the company closed at Rs 111.35 a scrip on the BSE, up 3.53 per cent from their previous close.