Simbhaoli shares jump 16% after company says committed to clear all dues

Shares of Simbhaoli Sugars surged over 16 per cent on Tuesday after the company said it is committed to clear its outstanding dues.

Faced with a CBI probe for alleged loan fraud, the Simbhaoli Sugars in a filing to BSE said it is committed to clearing its outstanding dues to the Oriental Bank of Commerce (OBC) in "due course of time" in consultation with all the lenders.

Reacting to the news, Simbhaoli Sugars touched an intraday high of Rs 16.45, up 15.84 per cent over its last close.

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On NSE, the stock opened at Rs 14.75, then surged further to a high of Rs 16.20, up 13.68 per cent over its previous closing price.

The CBI has registered a case against the company, its chairman Gurmit Singh Mann, deputy MD Gurpal Singh and others in connection with the alleged bank loan fraud of Rs 97.85 crore.

In a late night filing to stock exchanges, the company said it had taken finance from banks, for which it has been regular in repayments but for periodical adverse cycles in sugar industry.

Recently, OBC - one of the banks in its consortium - had filed a fraud monitoring report against the company and referred it to investigation agencies, it added.

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"In this regard, the company and its management are in process for submitting requisite clarifications and details to the investigating agencies and are fully committed to co-operate with the investigation.

"The management is committed to clear all of its outstanding dues with the OBC in due course of time, in the joint consultation of all the lenders," the filing said.

Shares of OBC declined over 3 per cent today. The stock touched an intra-day low of Rs 91.95 on BSE.