Gammon India rose 4.38% to Rs 12.62 at 11:00 IST on BSE after the company's board of directors transacted the business of transfer of Civil Engineering, Procurement and Construction business to Gammon Retail Infrastructure.
The company announced before market hours today, 18 November 2015.
Meanwhile, the BSE Sensex was down 43.22 points, or 0.17%, to 25,821.25.
On BSE, so far 41,340 shares were traded in the counter, compared with an average volume of 1.01 lakh shares in the past one quarter.
The stock hit a high of Rs 12.83 and a low of Rs 12.32 so far during the day. The stock hit a 52-week high of Rs 36.75 on 19 November 2014. The stock hit a 52-week low of Rs 10.75 on 10 September 2015.
The stock had underperformed the market over the past one month till 17 November 2015, falling 7.29% compared with Sensex's 4.96% fall. The scrip had also underperformed the market in past one quarter, dropping 32.27% as against Sensex's 7.22% drop.
The small-cap company has an equity capital of Rs 27.30 crore. Face value per share is Rs 2.
Gammon India said that the board of directors of the company at its meeting held on 17 November 2015 inter alia, has transacted the business of transfer of the company's Civil engineering, procurement and construction (EPC) undertaking namely, Civil Engineering, Procurement and Construction business carried on by the company in roads, hydro-power, nuclear power, tunnels, bridges, buildings, cooling towers, chimneys and other sectors as a going concern, which shall include all the properties, rights and powers and all debts, liabilities, duties and obligations comprised in/and pertaining to the Civil EPC business (Civil EPC Business) to Gammon Retail Infrastructure, the company's wholly owned subsidiary.
The transfer as approved on 14 August, 2015 will now be carried out through a combination of scheme of arrangement and slump sale subject to lenders and shareholders' approval. The board proposed a change in the appointed date to 31 December 2015 for the above process or such other date as may be approved by the High Court/CDR Lenders. The carve out of the Civil EPC business with the resultant debt, plant and machinery, properties, employees, projects and all other liabilities is to enable potential equity investors to invest in the Civil EPC business. The board is also evaluating proposals from potential investors for its Civil EPC Business.
The transactions will be effective upon receipt of approval of the shareholders, lenders and the High Court of Judicature at Bombay and all necessary approvals.
Gammon India reported net loss of Rs 187.50 crore in Q3 June 2015 compared with net loss of Rs 120.27 crore in Q3 June 2014. Net sales fell 19.4% to Rs 744.23 crore in Q3 June 2015 over Q3 June 2014.
Gammon India is one of the largest contractor and developer of infrastructure projects in India. The company operates in four major areas -- engineering, procurement and construction (EPC), construction business, infrastructure development business and international business and also has overseas presence in Europe and Africa apart from India.
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