Gammon India was locked at 10% upper circuit at Rs 16.65 at 12:01 IST on BSE after the company said that twelve lenders have decided to convert part of their outstanding debt into equity shares of the company.
The announcement was made after market hours on Friday, 18 December 2015.
Meanwhile, the S&P BSE Sensex was up 131.23 points or 0.51% at 25,650.45.
On BSE, so far 1.37 lakh shares were traded in the counter as against average daily volume of 1.81 lakh shares in the past one quarter.
The stock hit a low of Rs 15.95 so far during the day. The stock had hit a 52-week high of Rs 30 on 5 January 2015. The stock had hit a 52-week low of Rs 10.75 on 10 September 2015.
The stock had outperformed the market over the past one month till 18 December 2015, surging 16.99% compared with Sensex's 0.14% rise. The scrip had also outperformed the market in past one quarter, jumping 35.27% as against Sensex's 2.67% fall.
The small-cap company has equity capital of Rs 27.30 crore. Face value per share is Rs 2.
Gammon India said that twelve lenders have decided to convert part of their outstanding debt and interest amounting to Rs 245 crore into equity shares of the company at a price of Rs 11.89 per equity share, thus acquiring 60.1% of the equity capital of the company, under the strategic debt restructuring (SDR) package.
Gammon India's net profit rose 39.4% to Rs 504.20 crore on 95.1% growth in net sales to Rs 1761.81 crore in the quarter ended 30 September 2015 over the quarter ended 30 September 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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