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Educomp Solutions shares today surged 10 per cent, to touch the upper circuit, after the company initiated discussions with its lenders and approached corporate debt restructuring forum to rejig its rupee debt.
The company’s scrip jumped 9.88 per cent to Rs 37.25 — its upper circuit limit on the BSE. At the NSE, the stock zoomed up by 9.87 per cent to Rs 37.30.
In a filing to the BSE Educomp Solutions said, it has initiated discussions with its lenders and has approached corporate debt restructuring (CDR) forum to restructure its rupee debt to correct the asset liability mismatch on its balance sheet.
The company has also approached the CDR forum for restructuring of debt in its K-12 business (second major business, operated through its subsidiary — Educomp Infrastructure and School Management).
The debt-restructuring exercise will enable the company to comprehensively address the liquidity issues by matching the maturity profile of debt with the relatively long-term nature of its investments.
The restructuring will also allow the company to focus on and strengthen its core operations, Educomp Solutions said.
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