Wockhardt shares soar by 20% on CDR settlement expectation

Shares of pharma major Wockhardt today climbed by about 20 per cent, on reports that the company might go for corporate debt restructuring settlement.

Reacting positively to the move, the stock soared by about 20 per cent to touch a year-high of Rs 223.95 on the Bombay Stock Exchange in the mid-session.

On the National Stock Exchange as well, the scrip shot-up by over 20 per cent and was trading at Rs 224.65.

In terms of volume, over 60 lakh shares of the pharma firm changed hands on the two exchanges in the afternoon trade.

According to reports, the company may replace the existing Foreign Currency Convertible Bonds (FCCBs) with the new ones. It may issue FCCBs worth $75.08 million and increase the authorised capital from Rs 925 crore to Rs 1,125 crore.

The need for a corporate debt restructuring often arises when a company is going through financial hardship and is having difficulty in meeting its debt payment obligations.