IVRCL climbs 9% after allotting shares to Bank of Nova Scotia

MUMBAI: Stocks of infrastructure firm IVRCL jumped over 9 per cent in the morning trade today after the company said it has allotted 6.46 lakh shares to Bank of Nova Scotia as part of a Strategic Debt Restructuring (SDR).

The company's scrip gained 9.1 per cent to Rs 5.27 on BSE.

Similar movement was seen on NSE where the stock climbed 9.3 per cent to Rs 5.25.

The company yesterday said it has allotted 6.46 lakh shares to Bank of Nova Scotia as part of Strategic Debt Restructuring (SDR).

"Pursuant to provisions of Companies Act, 2013 and Sebi (Issue of Capital Disclosure Requirement) Regulations, 2009 and implementation of SDR, the company has made an allotment of 6,46,810 equity shares at a price of Rs 8.765 each, to Bank of Nova Scotia," it said in a regulatory filing.

In December last year, the debt-ridden firm said that its lenders have invoked SDR in the company.

Strategic debt conversion option gives 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.