Diamond Power Infrastructure today said its board has approved a proposal for strategic debt restructuring (SDR) initiated by the banks.

“The board of directors of the company at its meeting held on July 21, 2016,.. has discussed and approved SDR proposal initiated by the banks,” the company said in a BSE filing.

According to the statement, the board approved the invocation of SDR by lenders at the joint lenders’ meet held on June 29, 2016.

The lenders will be allocated shares which aggregate to a minimum of 51 per cent of the companies’ paid-up capital.

The board also recommended to have an enabling resolution to shareholders at the 24th AGM for empowering the board of directors with suitable power to execute the transaction.

“The board also approved increase in the authorised capital of the company from Rs 80 crore divided into 7.58 crore equity shares of Rs 10 each and 41.41 lakh preference shares of Rs 10 each to Rs 200 crore divided into 19.58 crore equity shares of Rs 10 and 41,41,500 preference shares of Rs 10 each ranking pari passu in all respect with the existing shares,” the company said in the regulatory filing.

However, the decision is subject to approval of shareholders.

The company’s lenders have invoked SDR with a view to convert a substantial portion of the debt into equity.

In a separate filing, the company said its consolidated net profit for the quarter ended March 31, 2016 was Rs 260.84 crore compared with Rs 230.43 crore a year ago.

Its consolidated net profit in 2015-16 was Rs 332.59 crore compared with Rs 183.31 crore in 2014-15.

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