By Malvika Gurung
Investing.com -- Shares of sugar producer Bajaj Hindusthan Sugar (NS: BJHN ) plummeted 12.81% to Rs 8.85 apiece at 12:16 pm, after diving 14.8% to Rs 8.65 apiece in early trade, defying a firm overall market mood, as benchmark indices Nifty50 and Sensex traded up to 0.6% higher.
Bajaj Hindusthan is Asia's Number 1 integrated sugar company and holds the fourth position globally. It is among the largest sugar ethanol manufacturing firms in India.
An insolvency petition has been filed against the 91-year-old sugar producer by the state-owned lending giant State Bank of India (NS: SBI ) at the Allahabad bench of the National Company Law Tribunal (NCLT).
According to a regulatory filing by Bajaj Hindusthan Sugar, SBI has initiated insolvency proceedings against the company under Section 7 of the Insolvency and Bankruptcy Code, 2016.
Reports have stated that the small-cap company owes estimated dues of about Rs 4,800 crore to public sector lenders like SBI, PNB (NS: PNBK ), Indian Bank (NS: INBA ) and Central Bank of India (NS: CBI ).
Bajaj Hindusthan has 14 sugar plants across the country, all situated in Uttar Pradesh, with an aggregate sugarcane crushing capacity of 1.36 lakh tonnes/day and an alcohol distillation capacity of 800 kL/day.
In July, markets regulator Sebi imposed a fine of Rs 10 lakh on the Mumbai-headquartered company for failure to disclose closure orders concerning certain distilleries and a penalty imposed by the Central Pollution Control Board. It was given 45 days to make the payment.
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