Bhushan Steel denies TV report about company sale

Bhushan Steel said a TV news report that the company's lenders were looking to sell the company was "completely false and baseless".

Shares in Bhushan Steel rose as much as 10 per cent to their daily limit on Tuesday after television channel ET Now reported the steelmaker's lenders had launched a sale process for the company.

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

Bhushan Steel, which owes about $6 billion to a consortium of banks, is under pressure after its managing director was implicated in a bribery case in August. The company has denied any wrongdoing and said it has been able to service loans.

(Reuters)