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by Biotech Express News Bureau
The Biotech company trapped here in bank fraud case is Sterling Biotech Ltd, whose act looks similar to Geetanjali Jeweller’s act of reported bank fraud of Rs 13000 crore. Both availed various credit facilities from a consortium of banks.
The name came up of a biotech organization, Sterling Biotech Ltd in a bank fraud case. Initially, the claim was around Rs 5,000 crore, to which Andhra Bank clarified that “We are the lead bank of the consortium in case of two group companies of Sterling Group and the Bank’s exposure to these companies is Rs 578.57 crore (fund based) and Rs 568.35 crore (non-fund based) as on date and not Rs 5000 crore as reported in the news publications.
According to previous reports (see here), the company has availed various credit facilities from a consortium of banks led by Andhra Bank. The total outstanding debt liabilities of the group companies, including Sterling Biotech, PMT Machines Limited, Sterling Oil Resources Limited and Sterling SEZ & Infrastructure Limited stood at ₹.5,383 crore as on December 31, 2016.
According to BSE’s notice, the entire promoter shareholding will be frozen effective immediately from 27 March 2018, till further notice, but the company still has a chance to get back nn stock trading business if they comply (to the satisfaction of the Exchange) with the provisions of the Regulation 55A of the SEBI (Depositories and Participants) Regulations, 1996 on or before April 12, 2018; trading in securities of the said companies will not be suspended.
Though, the shares of Sterling Biotech Ltd are coming down since 30 July 2018 when it was all time high at Rs. 251 per share but from March 2018 they have been continuously plummeting which results in a loss of an all-time low of Rs 1.75 in the span of 19 trading session on NSE.
Though 578 crore is huge sum but company shall comply with Regulation 55A of the SEBI (Depositories and Participants) Regulations, 1996 and will bring itself out from the situation which looks apparent by seeing their total assets. The company has a current market cap of INR 47.63 crore, Sales Turnover of INR 372.40 crore, Net Profit of -412.45 crore and Total Assets of INR 6,225.81 crore.
The fermentation facility of Sterling Biotech Ltd. is among the largest in the country with Fermentation capacity of 960 KL. It makes SIMVASTATIN AMMONIUM SALT, LOVASTATIN, DAUNORUBICIN HCL, DOXORUBICIN HCL, EPIRUBICIN HCL, IDARUBICIN HCL, ZOLEDRONIC ACID.
Note: More information will be available in article which will be publishing in April 2018 issue of Biotech Express Magazine. Please keep in touch or subscribe Print or digital issue for auto delivery from here.
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