Shriram EPC promoters increase shareholding as part of CDR scheme

The shareholding has increased from 41.33% by end of September to 69.87%

Shriram Industrial Holdings Ltd (SIHL), the promoter of Shriram EPC has increased its shareholding from 41.33% to 69.87%, mostly as part of the scheme of the Corporate Debt Restructuring (CDR) package by and betwee the company and its CDR lenders.

SIHL, which had 41.33% stake in the company at the end of September, 2014, has recently added 3.2 crore shares in Shriram EPC at a price of Rs 50 including a face value of Rs 10, for an aggregate consideration of around Rs 160 crore, as part of the CDR scheme. The CDR package, as stated in the postal ballot notice to the shareholders in October end, is to raise funds in accordance with the terms of the letter of approval from the CDR cell and the master restructuring agreement entered into by and between the company and its CDR lenders.

This has increased the promoters' stake in the company to 65.92%. It has acquired another One crore shares in Shriram EPC, which has increased the promoters' share holding by 3.95% to 69.87%, as against the 65.92% with the acquisition of 3.95% executed on November 15. The buy value for the One crore shares were Rs 50 crore, added the company filing.

In August, according to reports, the corporate debt restructuring cell has approved a Rs 2530 crore debt restructuring proposal of the company and under the package, the company would get 10 years to repay the loan and has been provided a 2-year interest moratorium by banks. The company is in the business of offering design, engineering, procurement and construction (EPC) and project management services for power plants.