3i Infotech spurts on mulling debt realignment proposal with lenders

3i Infotech was locked at 20% upper circuit at Rs 5.20 at 14:33 IST on BSE after the company said its board of directors will meet on 7 December 2015, inter-alia, to discuss and approve a proposal for the realignment of its debt with the lenders.

The announcement was made during market hours today, 4 December 2015.

Meanwhile, the S&P BSE Sensex was down 170.73 points or 0.66% at 25,715.89.

The stock spurted on heavy volumes. On BSE, so far 76.25 lakh shares were traded in the counter as against average daily volume of 10.68 lakh shares in the past one quarter.

The stock hit a low of Rs 4.05 so far during the day. The stock had hit a 52-week high of Rs 10.20 on 29 December 2014. The stock had hit a record low of Rs 2.18 on 25 May 2015.

The stock had outperformed the market over the past one month till 3 December 2015, surging 15.43% compared with Sensex's 2.65% fall. The scrip had also outperformed the market in past one quarter, jumping 40.45% as against Sensex's 0.47% rise.

The small-cap company has equity capital of Rs 636.15 crore. Face value per share is Rs 10.

3i Infotech said that a meeting of the board of directors of the company will be held on 7 December 2015, inter alia, to discuss and approve a proposal for the realignment of its debt with the lenders/lessors in India and foreign currency convertible bondholders (FCCBs). Such realignment of debt may include, among others, conversion of a portion of debt into equity/redeemable preference shares and restructuring of a portion of debt to provide for elongated repayment schedule and revised interest rate, 3i Infotech said. Any debt realignment proposal shall remain subject to approval from, among others, the lenders/lessors in India and FCCB holders as well as relevant shareholder and regulatory authorities, 3i Infotech said.

On consolidated basis, 3i Infotech reported net loss of Rs 92.31 crore in Q2 September 2015, higher than net loss of Rs 74.02 crore in Q1 June 2015. Net sales rose 6.64% to Rs 292.85 crore in Q2 September 2015 over Q1 June 2015.

3i Infotech provides a range of software and information technology (IT) solutions including packaged applications for the banking, financial services and insurance, manufacturing, contracting and retail and distribution industries.

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