Shares of Shriram EPC surged as much as 16 per cent to Rs 29.60 today after the company's board approved the conversion of Rs 1,280 crore working capital loan into equity shares as part of corporate debt restructuring package.
The board of the Chennai-based firm, which is into engineering, procurement and construction business, also approved issuance of Rs 265 crore of worth of preferential issue to the holding company - SVL Limited (erstwhile Shriram Industrial Holdings Limited).
It also approved an increase in the authorised share capital of the company. These moves, subject to shareholder approvals, will help bring down the debt of the company.
Debt-laden Shriram EPC, which is part of the Shriram Group, had reported a net loss of Rs 198 crore in the fourth quarter ending March 31, 2016.
At 10:53 a.m., shares of Shriram EPC were up 11 per cent to Rs 28.35 as compared to a flat broader markets.