PFC acquires 23% stake in Shree Maheshwar Hydel Power Corp worth Rs700 cr
03 Jun 2016
In a move that helped recover Rs700-cr of infrastructure loan that has turned non-performing, power sector lender Power Finance Corporation (PFC) on Thursday said it has acquired over 23-per cent stake in Shree Maheshwar
Hydel Power Corp by invoking pledged shares and partially converting debt into equity.
"Upon invocation of pledged shares and partial conversion of sub debt, the total shareholding of PFC in Shree Maheshwar Hydel Power Corporation Ltd (SMHPCL) stands at 13,18,46,779 equity shares of Rs 10 each,
representing 23.32 per cent of the paid-up equity share capital of SMHPCL," PFC stated in a filing with the Bopmbay Stock Exchange (BSE).
PFC, one of the lenders of Shree Maheshwar Hydel Power Corporation Ltd, had extended a loan of Rs700 crore to SMHPCL along with guaranteeing Rs400 crore to the bond holders of SMHPCL.
"SMHPCL has defaulted in repaying the loan to PFC and now PFC is enforcing its legal rights as per the pledge deed dated November 30, 2006....and subordinate loan agreement dated September 29, 2006, by invoking the
shares pledged by the promoters of SMHPCL in favour of PFC and by partial converting sub debt loan into equity shares," the filing said.
Accordingly PFC had served pledge invocation notice dated 19 May 2015 and conversion notice dated 18 December 2015 and 27 May 2016 on SHMPCL, it said.
"In furtherance to above, PFC is in receipt of communication from SHMPCL that its board of directors...has approved transfer of 6,57,46,779 equity shares of Rs10 each in favour of PFC pursuant to invocation of shares pledged
by its promoters in favour of PFC in terms of pledge deed...," it said.
Further the board of SMHPCL has also "approved allotment of 6,61,00,000 equity shares of Rs10 each to PFC consequent upon partial conversion of sub debt loan to SMHPCL to the extent of Rs 66.10 crore", the filing said.
The PFC stock was trading at Rs165.8, down Rs0.15 or 0.09 per cent from its previous closing of Rs165.95 on the BSE.
The scrip opened at Rs166.9 and has touched a high of Rs167.9 and a low of Rs165.7 per share. Around 404242 (NSE+BSE) shares were traded on the counter.