CKP group to acquire Diamond Power Infrastructure, to infuse 1200 crore
MUMBAI: The financially troubled Diamond Power Infrastructure company, which is now under the control of lenders led by Bank of India, will be sold to CKP group.
Lenders hold 70% stake in the company upon converting their debt into equity under strategic debt restructuring scheme. The new promoter will now infuse Rs 1200 crore in the company. The shares of company hit the upper circuit as it rose 5% to close at Rs 42.4 on the news that new investors will infuse capital in the loss making company.
In January lenders had converted Rs 855 crore of their debt into equity at Rs 41.28 a share. As a result they acquired majority stake in the company and the promoter’s stake fell from 44% to 11% in the quarter ending December 2016.
In a notice to the exchange on Tuesday, the company said that the lenders have in principal agreed to a proposal received from CKP Group to infuse Rs 1200 crore in the company. The company has not provided any information about CKP group.
Diamond Power Infrastructure has been reporting losses for the last five consecutive quarters. For the full year 2015-16 it reported a loss of Rs 324 crore.
After taking charge of the company in January the lenders have also appointed a professional managing director Surendra Kumar Negi. He had worked for 18 years in NTPC and Power Grid Corporation. He replaced Amit Bhatnagar, who belonged to promoter family.
Among lenders Bank of India has highest stake of 20% followed by Bank of Baroda at 10%, ICICI Bank at 8% and Axis Bank at 7.3%.
Diamond Power manufacture power equipment’s such as cable conductors and towers.
Lenders hold 70% stake in the company upon converting their debt into equity under strategic debt restructuring scheme. The new promoter will now infuse Rs 1200 crore in the company. The shares of company hit the upper circuit as it rose 5% to close at Rs 42.4 on the news that new investors will infuse capital in the loss making company.
In January lenders had converted Rs 855 crore of their debt into equity at Rs 41.28 a share. As a result they acquired majority stake in the company and the promoter’s stake fell from 44% to 11% in the quarter ending December 2016.
In a notice to the exchange on Tuesday, the company said that the lenders have in principal agreed to a proposal received from CKP Group to infuse Rs 1200 crore in the company. The company has not provided any information about CKP group.
Diamond Power Infrastructure has been reporting losses for the last five consecutive quarters. For the full year 2015-16 it reported a loss of Rs 324 crore.
After taking charge of the company in January the lenders have also appointed a professional managing director Surendra Kumar Negi. He had worked for 18 years in NTPC and Power Grid Corporation. He replaced Amit Bhatnagar, who belonged to promoter family.
Among lenders Bank of India has highest stake of 20% followed by Bank of Baroda at 10%, ICICI Bank at 8% and Axis Bank at 7.3%.
Diamond Power manufacture power equipment’s such as cable conductors and towers.
