Shriram EPC spurts on plan to convert debt into equity

Shriram EPC has gained 13% to Rs 28.70 on the BSE after the company said its board approved preferential issue of shares to the holding company and conversion of the working capital term loan of the lenders into equity shares.

On BSE, so far 1.65 lakh shares were traded in the counter, compared with an average volume of 10,373 shares in the past one quarter. The stock hit a high of Rs 29.60 and a low of Rs 27.50 so far during the day. The stock hit a 52-week high of Rs 39.60 on 11 August 2015.

The stock hit a record low of Rs 19 on 8 June 2016. The stock had outperformed the market over the past one month till 11 July 2016, rising 7.17% compared with 3.72% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 2.50% as against Sensex's 10.41% rise.

Shriram EPC said that its board approved conversion of the working capital term loan of the corporate debt restructuring (CDR) lenders into equity shares of the company to the maximum extent of Rs 1280 crore, subject to the shareholders and other regulatory approvals, at a price to be determined as per regulations.

The board also approved preferential issue to the holding company, SVL, (erstwhile Shriram Industrial Holdings) of Rs 265 crore, subject to shareholders and other regulatory approvals, at a price to be determined as per regulations.