Bombay Burmah Trading shares surge 14% after SC recalls Rs 4,655 crore lease-rent observation

Synopsis

Bombay Burmah Trading shares rose sharply on Thursday after the Supreme Court recalled its earlier observation linking the company to a Rs 4,655 crore lease-rent liability. The court said the amount had neither been notified to BBTCL nor finally determined after giving the company an opportunity to respond, easing concerns over potential financial exposure.

Shares of Bombay Burmah Trading Corporation surged 14% on the National Stock Exchange (NSE) on Thursday, August 27, after the Supreme Court recalled its earlier observation linking the company to an alleged Rs 4,655 crore lease-rent liability.

BBTCL shares traded at Rs 1,628.60 on the NSE at 10:14 AM, up Rs 202.40, or 14.19%, from the previous close of Rs 1,426.20. The stock opened at Rs 1,450 and touched an intraday high of Rs 1,613.70.

In its company filing, BBTCL stated that the Supreme Court, through an order dated August 19, allowed the company’s application seeking the recall and removal of observations made in paragraph 59 of an earlier May 29 order.

The proceedings related to BBTCL’s erstwhile Singampatti tea estate in Tamil Nadu.

The earlier observation had stated that lease rent of Rs 4,655 crore “remain[ed] to be recovered” by the state government from the company. BBTCL had argued that the civil appeals before the court did not concern lease rent and that no notice, demand or computation of the alleged liability had been served on it.

The company also said it had not been allowed to respond to or contest the amount.

The Supreme Court subsequently held that the Rs 4,655.24 crore had neither been the subject of a notice served on BBTCL nor finally determined after providing the company with an opportunity of hearing. It therefore recalled the lease-rent observations to the extent they related to BBTCL.

The development has offered relief to investors who had been watching the stock amid uncertainty over the potential financial implications of the earlier court observation.

BBTCL said it would continue to take all necessary steps in the matter and keep stakeholders informed of material developments.

Share Price

BBTCL’s sharp gains on Thursday come after a weak performance over the past year. The stock has declined around 10.5% in the last 12 months and 15.26% so far in 2026, while it is down more than 4% over the past six months.

At current levels, the stock trades at a price-to-earnings (P/E) multiple of 3.85 times and has a market capitalisation of Rs 11,301 crore.

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