Shriram EPC soars 17% as board seeks conversion of debt into equity shares

NEW DELHI: Shares of debt-laden Shriram EPC saw a nearly 17 per cent spurt in Tuesday’s trade after the company said it would seek shareholders' nod for conversion of its debt worth up to Rs 1,280 crore into equity shares.

The company in a regulatory filing told BSE, "The board at its meeting has transacted the conversion of working capital term loan of CDR lenders into equity shares to the maximum extent of Rs 1,280 crore, subject to approvals from shareholders and regulators at a price to be determined as per regulations," it said in a regulatory filing.

Incorporated in the year 2000, Shriram EPC is a smallcap company engaged in engineering construction activity.

The company posted a net loss of Rs 198.28 crore in the March quarter. Sales for the quarter were down 9.83 per cent YoY at Rs 139.72 crore.

The company on Monday informed the stock exchanges about a Rs 265 crore preferential issue to the holding company, SVL.The stock rose 16.53 per cent to hit a high of Rs 29.60 on BSE.