Shriram EPC spurts after board's nod for preferential allotment to promoter

Shriram EPC jumped 11.87% to Rs 44.30 at 12:42 IST on BSE after the company said its board approved issue of equity shares of the company on preferential basis to the promoters, Shriram Industrial Holdings.

The announcement was made after market hours on Friday, 10 April 2015.

Meanwhile, the S&P BSE Sensex was up 143.37 points or 0.5% at 29,022.75.

On BSE, so far 1.61 lakh shares were traded in the counter as against average daily volume of 22,373 shares in the past one quarter.

The stock hit a high of Rs 47 and a low of Rs 42 so far during the day. The stock had hit a 52-week high of Rs 49.45 on 11 November 2014. The stock had hit a 52-week low of Rs 25.20 on 25 August 2014.

The stock had outperformed the market over the past one month till 10 April 2015, surging 13.3% compared with Sensex's 0.59% rise. The scrip had also outperformed the market in past one quarter, jumping 17.16% as against Sensex's 5.18% rise.

The small-cap company has equity capital of Rs 86.36 crore. Face value per share is Rs 10.

Shriram EPC's board of directors at its meeting held on Friday, 10 April 2015, approved issue of equity shares of the company on preferential basis to the promoters, Shriram Industrial Holdings (SIHL) to the extent of Rs 389 crore and use of proceeds from such issuance towards redemption of cumulative redeemable preference shares and the repayment of the unsecured loan. The board also approved conversion of the funded interest term loan to the maximum of Rs 313 crore of the CDR lenders into equity shares of the company. Further, the board approved issue of equity shares in lieu of the sacrifice amount to the maximum of Rs 185 crore to the CDR lenders.

Shriram EPC reported net loss of Rs 35.87 crore in Q3 December 2014, higher than net loss of Rs 12.42 crore in Q3 December 2013. Net sales declined 30.5% to Rs 134.75 crore in Q3 December 2014 over Q3 December 2013.

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

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