Shares of Educomp Solutions rose more than 5 per cent after the company said that it has entered into negotiated settlement with ICICI Bank. It has 67 percent stake in Vidya Mandir Classes, a subsidiary of the Company.
"A step down subsidiary of the Company ( referred to as the "Sale Share")- by executing the share purchase agreement dated July 25, 2016 with the buyer," the company said in the press release.
"The aforesaid decision was made pursuant to invocation of the corporate guarantee of the Company by the ICICI bank. Further, the said Sale Shares were exclusive security of the ICICI bank under the facilities extended by ICICI bank to Educomp Learning Hour Private Limited", the release further added.
The aforesaid sale is in compliance with the approved Corporate Debt Restructuring scheme of the Company and in accordance with the Master Restructuring Agreement executed with the lenders and with the approval of ICICI bank, holder of the exclusive security, the company said in the BSE press release.
Shares of the Educomp Solutions rose 5 per cent to Rs 14 on BSE at 2.40 pm IST. It touched an intra-day high of Rs 15.30 during trade.