Shriram EPC shares rally over 10% on plans to convert debt into equity

Shriram EPC shares rallied over 10 per cent on Tuesday after the company said it will take shareholders nod for conversion of its debt worth up to Rs 1,280 crore into equity shares.

The share price of the company closed 10.83 per cent up at Rs 28.15. The scrip opened at Rs 27.50 and has touched a high and low of Rs 29.95 and Rs 27.50, respectively, in trade. Benchmark Sensex settled 181 points up at 27,808.

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In a BSE filing Shriram EPC said, “The board of directors at its meeting held on Monday has transacted the conversion of Working Capital Term loan of the CDR Lenders into equity shares of the company to the maximum extent of Rs 1,280 crore subject to shareholders and other regulatory approvals, at a price to be determined as per regulations.”

It has also decided on the preferential issue to the holding company – SVL Limited (Erstwhile Shriram Industrial Holdings Limited) of Rs 265 crores subject to shareholders and other regulatory approvals, at a price to be determined as per regulations.

Shriram EPC is a Chennai-based engineering, procurement, construction and project management services company.