Monnet Ispat to Convert Loan Into Equity

New Delhi: Monnet Ispat and Energy on Thursday said it will convert loan into equity shares to lenders under a strategic debt restructuring (SDR) scheme.

Monnet Ispat said in a filing to the BSE that its allotment committee, in a meeting held on Thursday, has considered and approved "allotment of equity shares pursuant to conversion of loan into equity shares in line with the provisions of SDR scheme invoked by Joint Lenders Forum (JLF)".

It has also approved allotment of equity shares pursuant to the conversion of loan into equity shares in terms of decision of JLF as a part of corrective action plan to the entities belonging to promoter and non-promoter category, the filing added.

The firm did not specify the amount of loan. 

Lenders of Monnet Ispat had formed the Joint Lenders Forum (JLF) in compliance with guidelines given by the Reserve Bank of India (RBI).

Shares in Monney Ispat, on the last day of year 2015, ended on a positive note, rising 4.14 per cent to settle at Rs 35.25 apiece on the BSE, whose benchmark Sensex index finished up 0.61 per cent.