Bhansali Eng has good news!

Bhansali Engineering Polymers is a manufacturer of ABS (Acrylonitrile butadiene styrene) and there is good news from the company. In times where companies are busy hoodwinking banks by not paying up their debts, Bhansali Eng has cleared all outstanding dues amounting to Rs 216.5 crore.

The Company was sanctioned working capital credit facilities amounting to Rs. 216.50 crore comprised of Fund based credit facilities (FBWC), Non Fund based credit facilities (NBFWC) and Credit Conversion Factor (CCF) on exclusive basis from Allahabad Bank. The entire dues/outstanding out of the aforesaid credit facilities have been repaid by company on 21st March, 2018, leaving no dues remaining, whatsoever.

Consequent upon above, Allahabad Bank has issued No dues letter, Shares pledge release letter to company, resulting into release of all the prime and collateral securities charged in favour of Allahabad bank to secure their aforesaid credit facilities of Rs. 216.50 Crore including exclusive Equitable Mortgage of Land and Building, Hypothecation of Plant & Machinery and all other Fixed assets of company related to its Abu Road Plant and Satnoor plant.

Even the pledge of 5 crore equity shares belonging to Promoter and Promoter Group of company and release of Personal Guarantee extended by its Managing Director Mr. B. M. Bhansali for securing the aforesaid credit facilities has been released.

Naturally the stock price has reacted positively to this rare breed of good news; the price rose almost 3.5% to Rs.173.45. Its 52-week high is at Rs.217.40.