 "IVRCL allots 24.27 million shares to lenders")
Hyderabad-based infrastructure player IVRCL informed the stock exchanges on Thursday it would hold an extraordinary general meeting (EGM) on January 18, 2016 to consider issuing of fresh shares to its 10 lenders. This would enable the lenders to hold 51 per cent or more of the total share holding in the company under the strategic debt restructuring (SDR) norms prescribed by the Reserve Bank of India.
The EGM will consider a resolution to issue 228.18 million shares having a face value of Rs 2 each to the lenders at Rs 8.765 per equity share in conversion of a part of debt into equity.
The meeting will also decide on a resolution to allot 7.961 million shares at Rs 24.39 apiece to the lenders in consideration of the increase of funded interest term loan according to the corporate debt restructuring and master restructuring agreement of June 30, 2014.
The accumulated interest was being periodically converted into equity under this agreement and this exercise has already taken the lenders’ total shareholding to nearly 50 per cent.
The 10 lenders are Andhra Bank, Lakshmi Vilas Bank, Bank of Nova Scotia, Tamilnad Mercantile Bank, Punjab and Sind Bank, Union Bank of India, International Asset Reconstruction Company, Life Insurance Corporation of India, DBS Bank, and Srei Equipment Finance Company.
The EGM’s agenda includes a resolution to authorise the board to delegate all or any of the powers conferred to any committee of directors or any one or more directors or key managerial personnel of the company.
