Bhushan Steel shares extend gains, lenders approve loan refinancing

Bhushan Steel shares jumped over 15 per cent on Monday, extending Friday's gain of 20 per cent, after news that some of its creditors have approved extending its loan for another 25 years.

The company has about $6 billion in loans.

Shares of the steel maker opened the day at Rs 62.45 and were trading at Rs 70.20 at 11.35 am - up 16.03 per cent than their previous close. The scrip has so far touched an intra-day high and low of Rs 71.65 and Rs 62.10, respectively.

In a BSE filing, Bhushan Steel said: "On December 15, 2014, the Reserve Bank of India announced a scheme for long-term structuring of loans in line with Cash Flows. The Joint Lenders Forum have agreed to extend loans of Bhushan Steel for a tenure of 25 years under the said scheme. However, the respective authorities of the banks have to approve the scheme, which is under process with the respective banks."

The steel maker and its creditors were in talks to extend loans under a central bank scheme, sources told Reuters in March.

Shares of Bhushan Steel closed at Rs 71.70, up 18.51 per cent against its previous close.