Shriram EPC rallies nearly 19% on likely infusion of funds by promoters

NEW DELHI: Shriram EPC Ltd rallied as much as 18.69 per cent in intraday trade on Monday, after media reports suggested that its promoter would infuse about Rs 389 crore into the company, while lenders would be issued shares for restructuring loans worth Rs 313 crore.

The stock ended day up 12.37 per cent or Rs 4.90 at Rs 44.5.

The debt-laden company is the engineering arm of diversified Shriram group.

At 09:35 a.m.; Shriram EPC pared some of the intraday gains but was still trading 13.3 per cent higher at Rs 44.90. It hit a low of Rs 42 and a high of Rs 47 in trade today.

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

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

"...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.