Educomp shares extend gains on debt restructuring plans

Shares of Educomp Solutions extended their gains for the second day on Wednesday, jumping over 10 per cent in early trade, after the company initiated discussions with its lenders to rejig its rupee debt.

In a filing to the Bombay Stock Exchange (BSE), the company said it has initiated discussions with its lenders and has approached corporate debt restructuring (CDR) forum to restructure its rupee debt to correct the asset liability mismatch on its balance sheet.

The company has also approached the CDR forum for restructuring of debt in its K-12 business (second major business, operated through its subsidiary - Educomp Infrastructure and School Management).

After making a bullish opening and climbing 9.93 per cent to its upper circuit limit, Educomp's scrip was trading 6.98 per cent higher at Rs 39.85 in afternoon trade at BSE.

Similary, shares of the company zoomed 9.91 per cent in opening trade at the National Stock Exchange before paring some of the gains to trade 6.84 per cent higher at Rs 39.85 in afternoon trade.

The debt-restructuring exercise will enable Educomp Solutions to comprehensively address the liquidity issues by matching the maturity profile of debt with the relatively long-term nature of its investments.

The restructuring will also allow the company to focus on and strengthen its core operations.

With inputs from PTI