Supreme Infra gains 12% as S4A plan gets nod
Out of a total debt of Rs 2,410 crore, the sustainable debt stood at Rs 1,271 crore, while the unsustainable part was reported at Rs 1,139 crore.
Supreme Infrastructure gained over 12 percent intraday on Thursday in the final hours of trade as investors could have cheered the approval of a debt resolution plan for the company.
The company informed the exchanges that an Overseeing Committee (OC) had approved the S4A resolution plan proposed by State Bank of India (SBI) on behalf of the joint lenders’ forum (JLF).
Further, it informed that out of a total debt of Rs 2,410 crore, the sustainable debt stood at Rs 1,271 crore, while the unsustainable part was reported at Rs 1,139 crore.
The company further said that Rs 1,134 crore of debt will now be converted into optionally convertible debentures (OCDs) for 15 years. The promoters will have the right of first refusal to buy these debentures.
Meanwhile, the share of promoter holding of 17.95 percent will be transferred to the lenders through a pledge, the company told the exchanges.
“Once implemented, the scheme would help the company reduce its interest cost on the unsustainable portion of its debt,” Supreme Infra’s exchange filing said.The stock has shown strong movements, gaining nearly 20 percent, while its three-day gain stood at 17 percent. At 15:21 hrs Supreme Infrastructure India was quoting at Rs 94.50, up Rs 6.15, or 6.96 percent on the BSE. It touched an intraday high of Rs 99.00 and an intraday low of Rs 89.15.