Diamond Power Infrastructure hit an upper circuit limit of 5% at Rs 37.25 at 12:35 IST on BSE after the company said it will convert its debt aggregating to Rs 855 crore into equity shares of Rs 41.28 each.
The announcement was made during trading hours today, 19 January 2017.Meanwhile, the BSE Sensex was up 74.79 points, or 0.27%, to 27,332.43.
On the BSE, so far 3.86 lakh shares were traded in the counter, compared with average daily volumes of 2.15 lakh shares in the past one quarter. The stock had hit a high of Rs 37.25 and a low of Rs 35.70 so far during the day.
The stock hit a 52-week high of Rs 63.15 on 20 October 2016. The stock hit a 52-week low of Rs 22.05 on 29 March 2016.
The small-cap company has equity capital of Rs 69.03 crore. Face value per share is Rs 10.
Diamond Power Infrastructure had approached its lenders in March 2016 for a comprehensive restructuring plan which envisaged conversion of debt into equity and induction of a new investor in the company. After detailed deliberations, the joint lenders forum met yesterday, 18 January 2017 and approved a decision to convert companies' debt aggregating to Rs 855 crore into equity shares at Rs 41.28 per share.
This step will bring down the company's debt by Rs 855 crore thereby correcting the capital structure of the company in a major way and reducing the interest burden substantially.
The company's committee of board of director will meet on 24 January 2017 for the allotment of shares to the various tenders in their agreed proportion.
On a consolidated basis, Diamond Power Infrastructure reported net loss of Rs 204.45 crore in Q2 September 2016 as against net loss of Rs 22.02 crore in Q2 September 2015. Net sales declined 31.62% to Rs 338.93 crore in Q2 September 2016 over Q2 September 2015.
Diamond Power Infrastructure is an integrated manufacturer of power transmission equipment and turnkey services provider (EPC).
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