Bharati Defence at 5% UC

Bharati Defence and Infrastructure, (earlier known as Bharati Shipyard), which has been hitting new lows almost every day consistently, today, hit the 5% upper circuit at Rs.7.30 the moment it opened for trading.

The stock price hit the roof on unconfirmed news that bigwigs like Mahindra Defence and Shapoorji Pallonji Group may independently bid for this ‘bankrupt’ company. Around a September, there had been a similar news of German Dry Docks looking to acquire the company.

Edelweiss, which owns 85% of the Rs 10,000-crore debt of the company, had filed a case at NCLT seeking permission to turn around the company under a new management. 

This is for the first time that we are hearing of such serious attempts for bankruptcy resolution under the Insolvency and Bankruptcy Code.