The Board of Gammon India met yesterday and they announced an important restructuring decision early today morning, before markets opened.

The company has decided to transfer its Civil EPC undertaking viz.: Civil Engineering, Procurement and Construction business carried on by the company in roads, hydro-power, nuclear power, tunnels, bridges, buildings, cooling towers, chimneys and other sectors as a going concern.

This will include all the properties, rights and powers and all debts, liabilities, duties and obligations comprised in/and pertaining to the Civil EPC business ("Civil EPC Business") to Gammon Retail Infrastructure Private Limited, the company's wholly owned subsidiary.

The transfer as approved on 14th August, 2015 will now be carried out through a combination of "Scheme of Arrangement" and "slump sale" subject to lenders and shareholders approval.

The company is a part of the debt restructuring scheme – its Rs.13,000 crore debt is being restructured and this is one of the largest restructuring packages which received the lenders approval during the last two years.

The market is obviously enthused with this news and the stock price remains some 5% up at almost Rs.12.70.