3i Infotech shares surged as much as 15 per cent to Rs 6.09 at its day's high after the board of the mid-sized IT company approved a debt realignment scheme and restructuring of foreign currency convertible bonds (FCCBs).
Under the debt realignment scheme, 3i Infotech proposed a restructuring of the outstanding debt of the company and its subsidiaries from creditors who are part joint lenders forum.
Among other measures, the 3i Infotech proposed waiver of interest up to March 31, 2016, and conversion of 35 per cent of principal component of the debt to non-convertible redeemable preference shares and conversion of 40 per cent of principal component of the debt into equity shares.
The debt realignment scheme is subject to approval of the lenders and regulatory agencies.
Restructuring of FCCBs includes waiver of accrued and unpaid interest up to March 31, 2016, waiver of portion of the principal amount of the existing bonds and conversion of part of principal component of the existing bonds into equity at a revised conversion price.
The FCCB restructuring proposal needs the approval of bondholders and other regulatory agencies.
3i Infotech had a total debt of nearly Rs 2,700 crore as on the financial year ended March 31, 2015. It had reported a consolidated loss of Rs 92 crore in the September quarter.
At 12:34 p.m., 3i Infotech shares were up 11.5 per cent at Rs 5.88 as compared to a 0.30 per cent fall in Nifty.
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