IVRCL another SDR candidate

IVRCL is a smart gainer on the bourses today. The company announced in the morning that the CDR Lenders have informed the Company yesterday night i.e. November 30, 2015 that at the Joint Lenders Forum (JLF) held on November 26, 2015, the Lenders have invoked Strategic Debt Restructuring (SDR) in the Company and adopted the “Reference Date” for the purpose as November 26, 2015.

This was an expected move as the company, in October’15, under the CDR, had allotted 1.5 crore equity shares of Rs.2 each at issue price of Rs.24.39 to International Asset Reconstruction Company Pvt Ltd (a Corporate Debt Restructure lender) who had inked the master restructuring agreement when the loans were recast.  This allotment was to facilitate conversion of Fixed Interest Term Loan into equity, for the period of December 1, 2013 to August 31, 2015.

The company is sitting on a debt of over Rs.7000 crore and this was the only recourse available. As such, currently lenders are holding 39.85% stake in the company and promoters stake is at just 8.28%.

In anticipation of getting a new management and hope that it could turn around under the SDR, the stock price is up today 4.5% at Rs.11.26, after an intra day high of Rs.12.04.