Dimond Power Infra to convert Rs 855 cr debt into equity

Diamond Power Infra today said a joint lenders forum (JLF) decided to convert debt of around Rs 855 crore into equity at a meeting held yesterday.
As per the pricing formula under strategic debt restructuring (SDR) guidelines of RBI, the price per share will be Rs 41.28 per scrip, considering the cut-off date as on June 29, 2016, a BSE filing 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.

The company had approached the lenders in March 2016 for a comprehensive restructuring plan that envisaged conversion of debt into equity and induction of a new investor.
The company has presence with solutions spanning across 90 per cent of power transmission and distribution value chain.
The stock was trading at Rs 37.25, up 4.93 per cent, on BSE in the afternoon.