Gammon India spurts as lenders initiate strategic debt restructuring

Gammon India was locked at 20% upper circuit at Rs 15.49 at 13:14 IST on BSE after the company said that the corporate debt restructuring empowered group has decided to initiate a strategic debt restructuring in the company by the CDR lenders.

The announcement was made after market hours yesterday, 23 November 2015.

Meanwhile, the S&P BSE Sensex was up 40.05 points or 0.16% at 25,859.39.

On BSE, so far 10.06 lakh shares were traded in the counter as against average daily volume of 1.04 lakh shares in the past one quarter.

The stock hit a low of Rs 13.50 so far during the day. The stock had hit a 52-week high of Rs 35.15 on 24 November 2014. The stock had hit a 52-week low of Rs 10.75 on 10 September 2015.

The stock had outperformed the market over the past one month till 23 November 2015, sliding 0.54% compared with Sensex's 6.01% fall. The scrip had, however, underperformed the market in past one quarter, declining 21.52% as against Sensex's 5.65% fall.

The small-cap company has equity capital of Rs 27.30 crore. Face value per share is Rs 2.

Gammon India said that the corporate debt restructuring empowered group (CDR EG) in its meeting held yesterday, 23 November 2015, discussed and noted the invocation of strategic debt restructuring (SDR) in the company by the CDR lenders, pursuant to Reserve Bank of India (RBI) Circular dated 8 June 2015. Gammon India said it will keep the exchanges informed on further developments in this regard.

Gammon India reported net loss of Rs 187.50 crore in the quarter ended 30 June 2015 compared with net loss of Rs 120.27 crore in the quarter ended 30 June 2014. Net sales fell 19.4% to Rs 744.23 crore in the quarter ended 30 June 2015 over the quarter ended 30 June 2014.

Gammon India is one of the largest contractor and developer of infrastructure projects in India. The company operates in four major areas -- engineering, procurement and construction (EPC), construction business, infrastructure development business and international business and also has overseas presence in Europe and Africa apart from India.

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