Diamond Power Infra shares gain nearly 5%

Shares of Diamond Power Infra today surged nearly 5 per cent after the company said a joint lenders forum (JLF) has decided to convert debt of around Rs 855 crore into equity.
The company's stock jumped 4.93 per cent to end at Rs 37.25 -- its highest trading permissible limit for the day -- on BSE.
On NSE, it went up by 4.95 per cent to close at Rs 37.10.
As per the pricing formula under strategic debt restructuring (SDR) guidelines of RBI, the price per share will be Rs 41.28, considering the cut-off date as on June 29, 2016, a company's filing on BSE said.

According to the statement, this step will bring down the company's debt by Rs 855 crore, correcting the capital structure of the company in a major way and reducing burden substantially.
The company's committee of board of directors will meet on January 24 for allotment of shares to the various lenders in their agreed proportion.