Ramky Infra bounces back sharply

Ramky Infra has been hitting a new low consistently for the past couple of days but today, it has zoomed up sharply into the green.  The stock is currently up almost 20% at Rs.39.10 with volumes rising to 38,000 shares today morning. The 2-week average volume stands at 19,000 shares.

The stock is up after the new lows it has been touching on a glimmer of hope -  the company’s debt restructuring plan has been approved and lenders will be converting 25% of the term loans into equity, which will help bring down interest rate on some loans.

The news is that interest rates have been cut to 11% from 1^st Oct’14 to 30^th sept’16 and to 11.25% from 1^st Oct’16 to 30^th Sept’17 and to 11.5% from 1^st Oct’17 onwards. The interest moratorium for Cash Credit is 18 months and Working Capital , Term loan and Short term loan is 24 months. The company will also get additional non-fund facilities of Rs.623 crore while promoter will infuse Rs.53.96 crore by way of unsecured loan.

The consolidated debt of Ramky Infra stood at Rs3,405 crore as on 30 September. The company is a consistent loss maker and it has ended Q3Fy15 with a net loss of Rs.133 crore v/s Rs.142 crore loss in Q2.