Educomp hits the roof
Educomp Solutions has hit the roof, literally. The stock has hit the 10% upper circuit at Rs.37.25 with over 1 lakh pending buy orders still on the counter.
The stock has bounced back today after languishing at its low levels of Rs.31-33 after the company announced that the company has initiated discussions with its lenders to restructure its debt and has approached the Corporate Debt Restructuring forum. The company’s gross debt as at 31st March 2013 stood at Rs.21,000 crore.
Things have been rough for the company for the past few months. It ended FY13 with a consolidated net loss at Rs.133 crore. Two rating agencies downgraded the stock. And that probably got the company finally working on its debt. It announced plans to get out of its non-core business and sold its 50% stake in IndiaCan and Eurokids International. But nothing apart from this CDR plan seems to have worked on the stock price.