​​​
  1. DBS Bank to take SDR route to convert part of Gammon India debt into equity

DBS Bank to take SDR route to convert part of Gammon India debt into equity

Gammon India on Wednesday said that DBS Bank has decided to convert part of its outstanding debt and interest of Rs 4.90 crore into equity under the RBI’s strategic debt restructuring (SDR) scheme.

By: | New Delhi | Published: June 2, 2016 7:17 AM

Gammon India on Wednesday said that DBS Bank has decided to convert part of its outstanding debt and interest of Rs 4.90 crore into equity under the RBI’s strategic debt restructuring (SDR) scheme.

In a regulatory filing, the company said, “DBS Bank has decided to convert part of its outstanding debt and interest aggregating to Rs 4.90 crores into 4,124,496 equity shares of the company of face value of Rs 2 each at a price of Rs 11.89 per equity share.” Post this conversion, Gammon India said, the total shareholding of the CDR Lenders and DBS Bank will be 63.07% of the total equity capital.

Its shareholding pattern on BSE showed that 40 banks and financial institutions together own 63.41% of the company as on March 2016.

On November 23 last year, the corporate debt restructuring lenders had decided to invoke RBI’s SDR scheme in Gammon India to convert a portion of its debt to equity.

The company’s gross debt at the end of March 2014 stood at Rs 11,061 crore, up 15.4% over March 2013, Bloomberg data showed. In FY14, the company reported a consolidated net loss of Rs 729 crore on the back of Rs 3,763 crore in revenues. Finance costs stood at Rs 699 crore. The company has not reported its 2015 earnings numbers. Gammon India’s CDR package of Rs 13,000 crore in 2013 was among the largest approved by the CDR cell.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Go to Top