Shriram EPC Surges 19% After Nod for Restructuring Package

Shriram EPC Surges 19% After Nod for Restructuring Package

Shares of Shriram EPC surged as high as 19 per cent to Rs 46.90 on Monday after its board approved conversion of loans into equity, under a corporate debt restructuring (CDR) package.

In a filing to exchanges, the company said that its board has 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."

This move is likely to reduce the interest burden of the company and boost its profitability in the future, analysts said.

The company also said its promoter Shriram Industrial Holdings Ltd (SIHL) is also infusing fresh equity up to Rs 389 crore, which will be used to redeem cumulative redeemable preference shares and repay unsecured loans.

Shares of Shriram EPC closed 13.15 per cent higher at Rs 44.75 apiece, outperforming the broader Nifty, which ended with 0.61 per cent gains on Monday.

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