IVRCL rallies 6%; to convert loans into 51% equity holding

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The company has decided to convert part of their loans to the highways developer into a 51 percent or more equity holding.

IVRCL Ltd rallied 6% to Rs.7.45 after the company has informed BSE that State Bank of India, Monitoring Institution acting on behalf of the lenders has informed the Company that JLF at the meeting held on February 23, 2016 have approved the SDR conversion package and that the Lenders will convert part of the debt of the Company into equity, in one or more tranches, at the price of Rs. 8.765/- per equity share of face value of Rs. 2/- each, enabling the lenders to collectively hold 51% or more of the total share capital of the Company, pursuant to provisions of SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2015 read with RBI Circular on SDR. 

The stock is currently trading above its 200 DMA.