Shares of Bajaj Hindusthan Sugar nosedived over 14 percent to Rs 8.68 apiece in early trade on August 17 after the State Bank of India filed an insolvency petition in the National Company Law Tribunal (NCLT) against the sugar manufacturing company.
The petition has been filed at the Allahabad bench of the National Company Law Tribunal under the Insolvency and Bankruptcy Code, the company said in an exchange filing on August 16. It did not share more details.
As per media reports, Bajaj Hindusthan Sugar owes nearly Rs 4,800 crore to banks like SBI, Punjab National Bank, Indian Bank and Central Bank of India.
The company has 14 sugar plants—all of them in Uttar Pradesh–and six distilleries with the capacity to produce 800 kilo litres of industrial alcohol a day.
The company also generates close to 430 megawatt (MW) of power from the bagasse produced at its sugar mills and supplies nearly 100 MW from it to the Uttar Pradesh state grid.
It also has five 90 MW coal-fired power plants adjacent to its sugar units, which generate another 450 MW of electricity for the state grid.
In the April-June quarter, the company reported a net loss of Rs 44.91 crore as against a net loss of Rs 49.72 crore in the same quarter of the previous financial year. Sales rose 13.11 percent to Rs 1,529.92 crore in the reporting quarter as against Rs 1,352.61 crore last year.
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