Categories: Business Hour

Visa Steel up 20%, to invoke strategic debt restructuring

Shares of Visa Steel climbed nearly 20 percent intraday Wednesday after the company’s decision to invoke strategic debt restructuring.

“Lenders of the company in its Joint Lenders Forum (JLF) meeting, on September 22, have decided to invoke strategic debt restructuring (SDR),” says the Kolkata-based mineral and metals company.

According to RBI circular dated June 8, 2015, invoke SDR means conversion of whole or part of the loan and interest outstanding into equity shares in the borrower company, so as to acquire majority shareholding in the company by JLF members. “Post the conversion, all lenders under the JLF must collectively hold 51% or more of the equity shares issued by the company,” says RBI.

Visa Steel says it is in discussion with lenders for preparing a conversion package to enable inviting a strategic investor in its special steel business. At 09:33 hours IST, the scrip of Visa Steel was quoting at Rs 16.95, up Rs 2.51, or 17.38 percent on the BSE.

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