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

New Delhi: Shares of Simbhaoli Sugars Ltd on Tuesday surged as much as 16% in morning trade after the company said it is committed to clear its outstanding dues to Oriental Bank of Commerce (OBC).

Simbhaoli Sugars, which is being probed by the Central Bureau of Investigation (CBI), on Monday said it is committed to clearing its outstanding dues to OBC in “due course of time” in consultation with all the lenders.

Following the announcement, Simbhaoli Sugars shares touched an intraday high of Rs16.45, up 15.84% over its last close. On NSE, the stock opened at Rs14.75, then surged further to a high of Rs16.20, up 13.68% 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 Rs97.85 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—filed a fraud monitoring report against the company and referred it to investigation agencies, it added.

“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.

OBC shares declined over 3% and touched an intraday low of Rs91.95 on BSE.livemint