Gammon India Ltd to seek lenders nod for preferential issue

The Board of Directors of Gammon India Ltd at its meeting held on April 03, 2014, has resolved to approach the CDR Lenders/Corporate Debt Restructuring Empowered Group for seeking its approval for issue of Zero Coupon Compulsorily Convertible Debentures for an amount not exceeding Rs. 100 Crores [Rupees One Hundred Crores Only] on preferential basis to Promoters/Entities, at a price to be decided pursuant to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, against their contribution made towards "Promoter Contribution" as envisaged under the Corporate Debt Restructuring (CDR) Scheme approved on June 24, 2013 and pursuant to the Master Restructuring Agreement dated September 24, 2013 executed by the Company with the CDR Lenders.

The Board approved appointment of consultants to advise the Company on options for value optimization of the Company's business.

Shares of GAMMON INDIA LTD. was last trading in BSE at Rs.15.55 as compared to the previous close of Rs. 15.72. The total number of shares traded during the day was 30315 in over 255 trades.

The stock hit an intraday high of Rs. 15.9 and intraday low of 15.1. The net turnover during the day was Rs. 471239.

Source : Equity Bulls

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