Educomp soars 10% on long term debt restructuring plan

Moneycontrol Bureau

Educomp Solutions shares gained 10 percent in early trade Tuesday after the leading education company is planning a long term debt restructuring.

"... initiated discussions with lenders and have approached corporate debt restructuring (CDR) forum to restructure its rupee debt to correct the asset liability mismatch in balance sheet." the company said in its filing.

Educomp also approached CRD forum for restructuring of debt in its K-12 business.

Education company said, "The debt-restructuring exercise will enable the company to comprehensively address the liquidity issues by matching the maturity profile of debt with the relatively long-term nature of its investments."

The restructuring exercise will also allow the company to focus on and strengthen its core operations.

At 09:37 hours IST, the stock was quoting at Rs 37.25, up 9.88 percent on the Bombay Stock Exchange. There were pending buy orders of 87,128 shares, with no sellers available.