SPML Infra was locked in upper circuit of 20% at Rs 161 on the BSE after the company announced the successful implementation of Scheme for Sustainable Structuring of Stressed Assets (S4A). Till 01:41 PM; a combined 618,133 shares changed hands and there were pending buy orders for 62,508 shares on the BSE and NSE. “The S4A scheme of the company has been signed yesterday evening i.e. 1st November 2017 with the Super Majority of Lender Banks.
This marks a successful implementation of the S4A Scheme for SPML Infra,” the company said in a statement on Thursday. Pursuant to the implementation of the said scheme, out of total debt of Rs 1,117 crore, a sum of Rs 545.85 crore is being converted into Optionally Convertible Debentures (OCD’s) with a tenure of 10 years (2027) carrying a coupon @0.01% with yield to maturity (YTM) of 8.15%. However, in the first 5 years only the said coupon of 0.01% will be paid and the payment of the effective YTM for the said 5 years will commence from the 6th year till 10th year. The payment of OCDs shall be in 20 quarterly installments starting from quarter ending December, 2022 and ending on the quarter ending September, 2027, it added. The company said as a result of the successful implementation of S4A scheme the company will have a cash flow benefit in terms of deferred and reduced debt service obligations of approximately Rs 70 crore per year for a period of five years.The said S4A scheme will support its working capital fund base resulting in strengthening the business of the company followed by the profitable revenue growth, it added. Since October 9, the stock had underperformed the market by falling 25% from Rs 176, after the company announced its proposal to issue OCDs on preferential basis to the lenders of the company comprising of banks and financial institutions, against the conversion of part of their outstanding debts pursuant to the implementation of the S4A scheme. On comparison, the S&P BSE Sensex was up 5.5% till Wednesday.