Diamond Power shines bright

There is finally some light at the end of the tunnel for the shareholders of Diamond Power Infra. This debt ridden company, which is a part of the SDR process, led by Bank of India has finally found a buyer.

Lenders, who hold 70% of the company are selling it to the CKP group and the market is thrilled not just because they found a buyer but also because the CKP group announced that it plans to infuse Rs.1200 crore into the company, to give it a new breath of life. No details of the CKP group has been divulged.

The lending banks converted debt worth Rs.855 crore into equity at Rs.41.28/share, getting majority stake and promoters stake now stands at a meagre 11%.

The stock price had hit the UC yesterday at Rs.42.40 and today too, it hit the UC at Rs.44.50.