Gammon India locked at 10% UC

Gammon India is locked at the 10% upper circuit today at Rs.16.65. Its 52-week high and low stands at Rs.30 and Rs.10.75 respectively.

Under the Strategic debt Restructuring (SDR) norms, the company stated that a 12-member team of lenders, led by ICICI Bank, will be converting Rs.245 crore worth of debt into equity shares of Rs.11.89/share, a 60.10% stake.

The company has a debt of around Rs.15,000 crore and this first came under the Corporate Debt Restructuring (CDR) scheme.

Post the CDR, the company was carved into three units - power transmission and distribution (T&D), engineering, procurement and construction (EPC) and the third included all residual businesses. Last week, its Board decided to transfer its civil EPC business to its subsidiary Gammon Retail Infrastructure Pvt. Ltd in order to allow potential equity investors to invest in the civil EPC business.  Currently, T&D and EPC are in the process of being sold to strategic investors while the SDR has been invoked only in the residual business unit.