Bajaj Hindustan Sugar Goes Bankrupt, SBI Files Petition
Bajaj Hindustan Sugar goes bankrupt, and State Bank of India files a petition in NCLT.
Shares of Jazz Hindustan Sugar today, on Wednesday, 17 August 2022, lost nearly 14 percent in early trading.
The reason for its breakdown is that the State Bank of India has to file an insolvency petition against the sugar manufacturer in the National Company Law Tribunal (NCLT).
The company said in an exchange filing on August 16 that a petition under the Insolvency and Bankruptcy Code has been filed in the Allahabad Bench of the NCLT.
It has not given further details. According to media reports, Bajaj Hindustan Sugar owes about Rs 4,800 crore to banks like SBI, Punjab National Bank, Indian Bank, and Central Bank of India.
By the close of the market on Wednesday, it fell to 12.98 percent and it closed at Rs 8.91. Since April 22, it has continued to decline. On 22 April 2022, it made a high of Rs 22.58.
What does the company do?
According to a report by Moneycontrol, lending banks and institutions usually file insolvency petitions in the corporate court for non-payment of dues.
Once the court accepts the petition, insolvency proceedings against the company began.
Bajaj Hindustan is a sugar and ethanol manufacturing company. It is part of the Bajaj Group and is headquartered in Mumbai.
The company has 14 sugar plants. All these are in Uttar Pradesh and there are six distilleries, which have the capacity to produce 800-kilo liters of industrial alcohol a day.
The company also generates about 430 megawatts (MW) of electricity from bagasse produced in its sugar mills and supplies about 100 MW of electricity to the Uttar Pradesh state grid.
It also has five 90 MW coal-fired power plants adjacent to its sugar manufacturing units, which generate 450 MW of electricity for the state grid.
Significantly, in the April-June quarter, the company had a net loss of Rs 44.91 crore, as compared to a net loss of Rs 49.72 crore in the same quarter of the previous financial year.
Sales for the quarter under review grew by 13.11 percent to Rs 1,529.92 crore as against Rs 1,352.61 crore last year.
