IVRCL allotted 8.79 crore equity shares of ₹2 each on December 4 to the lenders who backed its corporate debt restructuring (CDR) and signed the master restructuring agreement with the company.

This allotment is towards the first tranche of conversion of funded interest term loan into equity for the period from December 1, 2013, to September 30, 2014. Such loans are part of the CDR package offered to a company that seeks debt restructuring.

Shares in lieu of interest R Balarami Reddy, Group Chief Financial Officer, told Business Line : “The allotment is part of the loan restructure arrangement we entered into with various lenders. As against the general norm of collecting interest, they have opted for conversion of this loan component into equity. Accordingly, they have been allotted shares in the company.”

Asked about the market conditions and infrastructure sector, Reddy said interest rates continue to rule high, which is a matter of concern.

However, overall sentiment in the business environment has picked up. “In the case of the company, with cash infusion from banks and relief through the CDR package, we expect things to get better by next quarter and next year. The pace work has to improve. This will take some more time. However, the strong order book the company has would enable us to improve business volumes,” he said.

Returning normalcy On the tough second quarter the company experienced, Reddy said cash flows had slowed down and work pace was impacted. Business is gradually getting back to normalcy. This would have positive impact on the overall business.

Asked about the company’s effort to divest stake in some of the build-operate-transfer projects, he said talks are at an advanced stage and couple of deals are likely to be concluded by year end or early next year.

On Friday, IVRCL shares closed at ₹17.25, up 1 per cent, on the BSE.

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