The board of Shriram EPC Ltd. approved the conversion of its debt into equity shares, on preferential basis, under the corporate debt restructuring package approved on September 20, 2014.
The company will allot 55,13,97,849 equity shares to its lenders for Rs 23.25 per share in one or more tranches, the company said in its filing to the exchanges. The company is converting Rs 1,282 crore debt, or over 53 percent of its total debt into equity.
Shriram EPC’s promoter, Shriram Industrial Holdings Ltd., will also infuse capital by subscribing to 11,39,78,495 equity shares. Promoters will bring in capital to the tune of Rs 265 crore, in proportion to the debt to equity conversion. Upon full conversion and subscription of shares, the promoter holding will fall to 28.05 percent from the current 50.03 percent.
In financial year 2016, the company converted Rs 485 crore of debt into equity and the promoters infused Rs 389 crore capital.