Mukand jumps 11% on approval to exit from CDR mechanism

Investors lapped up shares of Mukand on Thursday after the Corporate Debt Restructuring Empowered Group (CDR EG) approved exit of company from CDR mechanism. The stock gained 11.4 percent intraday.

The company was under Financial Restructuring Scheme dated July 22, 2003 approved by the CDR EG (set up by the Reserve Bank of India).

In minutes, which were approved by CDR EG in its meeting on May 29, 2015, confirmed that the exit of the account of Mukand from CDR mechanism stands approved.

In an interview to CNBC-TV18, Rajesh Shah, co-chairman & managing director, Mukund said the company had some loss making unit due to foreign exchange. "We have debt of around Rs 2,200-2,400 crore," he added.

At 11:55 hours IST, the scrip of Mukand was quoting at Rs 39.20, up Rs 1.95, or 5.23 percent on the BSE.