Shares of IVRCL gained more than 30 per cent so far this week and surged 14 per cent in trade on Thursday after the infra development firm said it has initiated Corporate Debt Restructuring (CDR) mechanism with the lenders.
The stock ended the day 7.71 per cent up after rallying as much as 14.57 per cent to Rs 10.85, on the Bombay Stock Exchange (BSE) .
In a reply to the clarification sought by Sebi, the company said strategic debt restructuring (SDR) is one of the various options available to the lenders to convert debt.
SDR option will give lenders the right to convert their outstanding loans into a majority equity stake if the borrower fails to meet conditions stipulated under the restructuring package and take control of the company operations.
"The matter is still being deliberated by the lenders and no communication has been received yet," said infra firm in a filing to market regulator.
As on June 30, the promoters' stake in the company stood at 8.7 per cent.
The company is yet to disclose the promoters' stake as on September 30.
Last year the company recast its Rs 7300 crore debt under CDR package.
In a separate filing the company said it made an allotment of 1,50,46,858 equity shares of Rs 2 each, at issue price of Rs 24.39 per share to International Asset Reconstruction Company Pvt Ltd (CDR Lender) who have signed the Master Restructuring Agreement.
This allotment is towards conversion of funded interest term loan into equity, for the period of December 01, 2013 to August 31, 2015.
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