Shriram EPC gains as board to consider preferential issue of shares

Shriram EPC rose 2.08% to Rs 29.50 at 11:40 IST on BSE after the company scheduled a board meeting on 19 January 2017, to consider issuance of shares to a private company on preferential basis.

The announcement was made after market hours yesterday, 16 January 2017.

Meanwhile, the S&P BSE Sensex was down 36.25 points or 0.13% at 27,251.92.

On the BSE, 56,000 shares were traded on the counter so far as against the average daily volumes of 84,225 shares in the past one quarter. The stock had hit a high of Rs 30.40 and a low of Rs 29 so far during the day.

The stock had hit a 52-week high of Rs 40.80 on 7 November 2016 and a record low of Rs 19 on 8 June 2016. The stock had underperformed the market over the past one month till 16 January 2017, declining 4.78% compared with the Sensex's 3.01% rise. The scrip had, however, outperformed the market over the past one quarter advancing 21.68% as against the Sensex's 1.39% fall.

The small-cap company has equity capital of Rs 783.51 crore. Face value per share is Rs 10.

Shriram EPC said that a meeting of the board of directors of the company is scheduled on 19 January 2017, to consider the issuance of shares in lieu of the working capital term loan to the corporate debt restructuring (CDR) lenders based on reconciliation with the bankers. The board will also consider issuance of shares upto Rs 35 crore to a private limited company on preferential basis.

Shriram EPC reported net loss of Rs 55.03 crore in Q2 September 2016, as against net loss of Rs 17.43 crore in Q2 September 2015. Net sales declined 22.6% to Rs 80.09 crore in Q2 September 2016 over Q2 September 2015.

Shriram EPC offers design, engineering, procurement, construction and project management services for infrastructure projects.

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