Gammon India Shares Jump 18% On Debt Recast

Business

oi-Sunil

By Sunil Fernandes

Published: Tuesday, November 24, 2015, 11:31 [IST]

Shares in Gammon India jumped a huge 18 per cent, after reports that lenders will initiate a debt restructuring exercise at the company.

Lenders led by banks like ICICI Bank and Canara Bank, which have a huge debt exposure to Gammon India Ltd have decided to convert part Rs.15,000 crore debt into equity strategic debt restructuring (SDR) exercise.

"The corporate debt restructuring empowered group (CDR EG) in its meeting held on November 23, 2015 has discussed and noted the invocation of strategic debt restructuring (SDR) in the company by the CDR lenders,"

Gammon India said in a statement to the stock exchanges on Monday. The stock was last trading at Rs 15.50, up 18 per cent on the National Stock Exchange. Several infrastructure companies like Gammon India have been saddled with huge debts, following an economic slowdown in the last few years.

The debt restructuring exercise, may come at a good time for the company given the huge infrastructure thrust at the company.

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