Shares of Bajaj Hindusthan Sugar Ltd. tumbled nearly 18% to a 52-week low in intraday trade after State Bank of India initiated an insolvency resolution process. The stock closed with nearly 12% losses.
“State Bank of India, financial creditor through its advocate has initiated corporate insolvency resolution process of Bajaj Hindusthan Sugar before the National Company Law Tribunal, Allahabad Bench under Section 7 of Insolvency and Bankruptcy Code 2016,” the sugar and ethanol maker said in an exchange filing on Wednesday.
The company reported a consolidated net loss of Rs 267.54 crore in FY22. On Friday, it posted a net loss of Rs 45 crore for the quarter ended June 30.
Bajaj Hindusthan has 14 sugar plants in Uttar Pradesh and has an annual ethanol manufacturing capacity of 218 million litres. It also has a sugarcane crushing capacity of 1,36,000 tonnes a day.
The stock's trading volume was over nine times the 30-day average, when markets closed. The Relative Strength Index was at 26, suggesting the stock may be ‘oversold'.
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