IVRCL shares jumped as much as 9 per cent in the morning trade on Tuesday after the company on Monday (post market hours) said it has allotted 6.46 lakh shares at a price of Rs 8.765 to Bank of Nova Scotia as part of a Strategic Debt Restructuring (SDR).
At 11.46 am, shares of IVRCL were trading 5.38 per cent up at Rs 5.09 on BSE. The scrip opened at Rs 4.95 and has touched a high and low of Rs 5.57 and Rs 4.95, respectively, in trade so far.
Later, the share price of the company closed 4.14 per cent up at Rs 5.03.
In a BSE filing, the company said, “Pursuant to provisions of Companies Act, 2013 and Sebi (Issue of Capital Disclosure Requirement) Regulations, 2009 and implementation of SDR, the company has made an allotment of 6,46,810 equity shares at a price of Rs 8.765 each, to Bank of Nova Scotia.”
Strategic debt conversion option gives lenders the right to convert their outstanding loans into a majority equity stake if the borrower fails to meet conditions stipulated under the restructuring package and take control of the company operations.
For the quarter ended March 31, 2016, the company reported net loss of Rs 263.95 crore, down 70.20 per cent, against Rs 155.08 crore in the corresponding quarter a year ago.
(With agency inputs)