Vadodara-based Diamond Power Infrastructure Ltd has announced that the company’s lenders have agreed to transfer their holding to Mumbai-based CKP Group, which has proposed to infuse ₹1,200 crore under the Strategic Debt Restructuring (SDR) Scheme.

Consolidated debt

In a statement to stakeholders on Tuesday, Diamond Power said, “The company would like to inform its shareholders that lenders at their meeting agreed (in principle), subject to approvals of various authorities, towards the proposal received from CKP Group to infuse ₹1,200 crore under SDR scheme.” According to company sources, Diamond Power has a consolidated debt of around ₹2,600 crore. The Mumbai-based CKP Group offered a ₹1,200-crore package to the lenders, the sources said.

The company’s limited review report said that in June 2016, the lenders of the company invoked the ‘Strategic Debt Restructuring’ (SDR) under the RBI Guidelines. As a part of the SDR, the lenders have converted the part of their dues amounting to ₹828.43 crore representing 74.42 per cent into equity and accordingly the new equity shares of the company are issued to them in January 2017 in proportion of their outstanding dues.

For the December quarter, the company posted consolidated net loss of ₹190 crore as against the net loss of ₹53 crore in the same quarter last year. The company had total income from operations at ₹252 crore, as against ₹502 crore in the same quarter last year.

Earlier this month, Diamond Power Infrastructure shareholders had approved the proposal to convert ₹2,398-crore debt into equity and optionally convertible redeemable preference shares.

Company shares jumped by nearly 5 per cent to hit the upper circuit to close at ₹42.45 on the NSE on Tuesday.

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