Shriram EPC set for promoter fund infusion, stock spikes 13%

Shares of Shriram EPC surged over 13 per cent today as the promoters have decided to infuse about Rs 389 crore into the company.
The stock climbed 12.37 per cent to settle at Rs 44.50 on the BSE on Monday. During the day, it soared 18.68 per cent to Rs 47.
On the NSE, it zoomed 13.15 per cent to end at Rs 44.75.
Following the sharp rise in the stock, the company's market value went up Rs 43 crore to Rs 384 crore.
In terms of volume, 2.26 lakh shares of the company changed hands at the BSE and over 7 lakh shares at the NSE during the day.

Debt-laden Shriram EPC had on Friday said its promoter would infuse about Rs 389 crore into the company while lenders would be issued shares for restructuring loans worth Rs 313 crore.

Shriram EPC is the engineering arm of diversified Shriram group.
In addition, shares will be issued to them in exchange of "sacrificing" around Rs 185 crore under the corporate debt restructuring (CDR) plan.
In a regulatory filing, Shriram EPC had said its board had approved the proposals during a meeting held on Friday.
"...Board of directors of the company...Discussed and 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," Shriram EPC had said.

The board also approved "issue of equity shares of the company on preferential basis to the promoters, Shriram Industrial Holdings Ltd (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", it had said.