IVRCL Limited has convened Extra-ordinary General Meeting (EGM) on January 18 to take up the special business of further issue of shares to lenders who participated in the company’s corporate debt restructure.
In a notification made to the BSE, the Hyderabad-based infrastructure company has informed that the meeting will seek nod for issue of shares on conversion of Fixed Interest Term Loan (FITL) amount to some of the company CDR lenders.
The Board of Directors of the company will convert FTIL amount into equity shares by issuing and allotting, in one or more tranches 79,61,432 fully paid up equity shares at a price of Rs 24.39 per equity share having face value of Rs 2 each aggregating to Rs 19.41 crore.
The lenders include Andhra Bank, Lakshmi Vilas Bank, Bank of Nova Scotia, Tamilnad Mercantile Bank, Punjab & Sind Bank, Union Bank of India, International Asset Reconstruction Company, Life Insurance Corporation of India, DBS Bank and SREI Equipment Finance.
The company Board will also seek nod for conversion of debt into equity of the company as per the terms of Strategic Debt Restructuring (SDR) of the company.
The Joint Lenders Forum last month decided to take to SDR. Accordingly, as per the RBI guidelines, 22.81 crore equity shares of face value of Rs 2 each, fully paid up at a price of Rs 8.76 per equity share will be allotted in one or more ranches to the lenders on preferential basis. This will enable the lenders to collectively hold 51 per cent or more of the total share capital of the company.
November 26, 2015 has been chosen as the relevant date for the purpose of issue of shares to lenders.
Some of the lenders such as LIC, DBS Bank, Punjab & Sind Bank, Union Bank had not opted for CDR initially and they may opt for it in near future. Since these banks and financial institutions are opting for CDR belatedly, there is increase in FITL amount. The company is therefore required to covert such increased interest amount into equity shares.