 "Patel Engineering zooms 20% on debt reduction hopes")
Patel Engineering is locked in upper circuit of 20% at Rs 57.10 on the BSE after the company announced that the Union Cabinet's decision requiring the government agencies to pay 75% of arbitral awards is expected to reduce the company’s debt by more than half.
“Patel Engineering has won arbitration award in excess of Rs 2,500 crore. With the recent Cabinet decision, the company will get 75% of this amount immediately which will be utilized to retire debt”, the company said in a press release.
Further, claims approximately Rs 5,000 crore are in arbitration process and are expected to be monetized with next 12 to 18 months based on the Cabinet decision. The same will be utilized to reduce the debt even further, it added.
Patel Engineering’s total standalone debt as on March 31, 2016 stood at Rs 4,535 crore approximately.
Till 03:21 pm, a combined 2.61 million shares changed hands and there were pending sell orders for 782,196 shares on the NSE and BSE.
“Patel Engineering has won arbitration award in excess of Rs 2,500 crore. With the recent Cabinet decision, the company will get 75% of this amount immediately which will be utilized to retire debt”, the company said in a press release.
Further, claims approximately Rs 5,000 crore are in arbitration process and are expected to be monetized with next 12 to 18 months based on the Cabinet decision. The same will be utilized to reduce the debt even further, it added.
Patel Engineering’s total standalone debt as on March 31, 2016 stood at Rs 4,535 crore approximately.
Till 03:21 pm, a combined 2.61 million shares changed hands and there were pending sell orders for 782,196 shares on the NSE and BSE.
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