Shriram EPC gains after board's nod for preferential allotment to promoters

Shriram EPC rose 3.38% to Rs 35.20 at 13:29 IST on BSE after the company said its board of directors approved infusion of equity capital for a maximum amount of Rs 100 crore into the company by way of preferential allotment to promoters.

The announcement was made after market hours on Friday, 18 December 2015.

Meanwhile, the S&P BSE Sensex was up 173.29 points or 0.68% at 25,692.51.

On BSE, so far 46,000 shares were traded in the counter as against average daily volume of 7,163 shares in the past one quarter.

The stock hit a high of Rs 35.90 and a low of Rs 34.65 so far during the day. The stock had hit a 52-week high of Rs 47 on 13 April 2015. The stock had hit a 52-week low of Rs 27 on 30 September 2015.

The stock had outperformed the market over the past one month till 18 December 2015, gaining 12.75% compared with Sensex's 0.14% rise. The scrip had also outperformed the market in past one quarter, surging 18.43% as against Sensex's 2.67% fall.

The small-cap company has equity capital of Rs 275.57 crore. Face value per share is Rs 10.

Shriram EPC's board of directors at a meeting held on Friday, 18 December 2015, approved conversion of part of the working capital term loan of the corporate debt restructuring (CDR) lenders into equity shares of the company to a maximum of Rs 491.83 crore, subject to shareholders and other regulatory approvals, at a price to be determined as per regulations.

Shriram EPC reported net loss of Rs 17.43 crore in Q2 September 2015, lower than net loss of Rs 70.54 crore in Q2 September 2014. Net sales fell 13.2% to Rs 103.44 crore in Q2 September 2015 over Q2 September 2014.

Shriram EPC offers design, engineering, procurement, construction and project management services for power plants.

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