Shriram EPC spurts as board to consider share issuance under CDR

Shriram EPC rose 9.25% to Rs 39.55 at 10:00 IST on BSE after the company said its board will meet on 10 April 2015, to consider the conversion of the funded interest term loan of the CDR lenders into equity shares of the company.

The announcement was made after trading hours yesterday, 8 April 2015.

Meanwhile, the BSE Sensex was up 128.76 points, or 0.45%, to 28,645.35.

On BSE, so far 25,000 shares were traded in the counter, compared with an average volume of 77,367 shares in the past one quarter.

The stock hit a high of Rs 39.55 and a low of Rs 37.50 so far during the day. The stock hit a 52-week high of Rs 49.45 on 11 November 2014. The stock 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 7 April 2015, rising 1.26% compared with 3.17% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 9.70% as against Sensex's 5.97% rise.

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

CDR (Corporate Debt Restructuring) lenders refers to the lenders of the company whose loans are restructured under the CDR package. The board will consider issue of equity shares in lieu of the sacrifice amount to the CDR lenders.

The board will also consider issue of equity shares of the company on preferential basis to the promoters, Shriram Industrial Holdings. The proceeds would be utilized towards redemption of cumulative redeemable preference shares and the repayment of the unsecured loan, it added.

Shriram EPC reported net loss of Rs 35.87 crore in Q3 December 2014 as against net loss of Rs 12.42 crore in Q3 December 2013. Net sales declined 30.51% 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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