Shares of Sadbhav Engineering rose over 3% on Friday, trading at Rs 8.40 during the session, after the company announced the execution of a Master Restructuring Agreement (MRA) with its consortium lenders.
The agreement involves restructuring of debt obligations worth Rs 1,516.71 crore, marking a significant step in the company’s financial restructuring plan under the Reserve Bank of India’s stressed assets framework.
Following the upward movement in the share price, the company’s market capitalisation increased by approximately Rs 55 crore, taking it to around Rs 1,440 crore.
The restructuring agreement has been executed with multiple lenders including Punjab National Bank, Union Bank of India, Axis Bank, Bank of India, Yes Bank, and Assets Care & Reconstruction Enterprise, with IDBI Trusteeship Services acting as the security trustee.
As part of the restructuring, the company’s fund-based exposure of Rs 906.35 crore will be converted into non-convertible debentures, while the agreement also includes provisions for conversion of certain debt components into equity.
Additionally, lenders have been granted rights to appoint nominee directors on the board, and existing securities will be extended to cover the restructured debt.
During Friday’s session, the stock traded in the range of Rs 8.10 to Rs 8.42, compared to its previous close of Rs 8.08.
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