Promoters to infuse Rs 389 crore in Shriram EPC

NEW DELHI: Debt-laden Shriram EPC today said its promoter would infuse about Rs 389 crore into the company, while lenders would be issued shares for restructuring loans worth Rs 313 crore.

Shriram EPC is the engineering arm of diversified Shriram group.

In addition, shares would be issued to them in lieu of "sacrificing" around Rs 185 crore under the corporate debt restructuring (CDR) plan.

In a regulatory filing, Shriram EPC said its board has approved the proposals during a meeting held today.

"...board of directors of the company...has discussed and approved conversion of the funded interest term loan to the maximum of Rs 313 crore of the CDR lenders into equity shares of the company," Shriram EPC said.

The board also approved, "issue of equity shares of the company on preferential basis to the promoters, Shriram Industrial Holdings Ltd (SIHL) to the extent of Rs 389 crore and use of proceeds from such issuance towards redemption of cumulative redeemable preference shares and the repayment of the unsecured loan," it said.

The shares of the company closed at at Rs 39.60 a piece on BSE, up 2.59 per cent from the previous close.