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Jayanta Mallick

Kolkata , Nov. 13

Artson Engineering, an EPC firm specialising in piping and large diameter tankages, is close to restructuring its debts.

Though banking sources close to the company management confirmed the development to Business Line, Mr N.K. Jagasia, the company CMD, declined to comment on the issue.

Dalal Street responded positively to the unconfirmed news and the stock posted a gain of around 4.5 per cent to close at Rs 28.50 on the BSE on Monday with a traded quantity of Rs 47,898 shares.

The counter had been weak in the past one month and after today's turnaround is still in the loss of over 19 per cent compared to Rs 35.35 recorded on October 14 last.

According to market and banking circles, the three-bank consortium had recently agreed to the restructure package after Kotak Mahindra Bank, last of the three lenders, approved Artson's proposal.

This is estimated to reduce the debt burden from the current figure of Rs 40 crore to Rs 17 crore, banking sources said.

The restructuring package also involves fresh investment by the promoters.

Registered under BIFR, Artson has not been making provisions for interest payment in its accounts since the restructuring plan was before the bankers. The company had reported a small profit first in the quarter to March 31, 2004, after a long loss-making streak.

Since then, there had been gradual recovery.

In the first half ending September 30, 2006, the company reported a net profit of Rs 1 crore (sans interest provisions).

The current paid up capital of the company is Rs 9.23 core.

The non-promoter holding in the company is of around 87 per cent and the public holding was placed at around 70 per cent on March 31, 2006.

More Stories on : Stocks | Restructuring | Engineering

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