Shree Ganesh Jewellery shines

The spike up in the price is on account of the statement issued by the company yesterday. It has stated that the company has approached State Bank of India (SBI), the Lead Bank of the Consortium for referring the matter to Corporate Debt Restructuring Cell for Corporate Debt Restructuring (CDR) of its debts. The Flash Report for the same is being submitted to the lead bank and SBI has convened the Consortium meeting of all the bankers on December 20, 2013.

Corporate Debt Restructuring or CDR is a mechanism adopted in India which permits viable companies additional time to meet debt obligations, subject to certain terms and conditions.

The company had gone public in 2010 and that time, PE Fund, Credit Suisse made its smart exit. It currently holds 4.94% stake. Post its venture into Dubai for gold purchase, thanks to uncertain rules and regulations, the company’s contract there never took off. That loss apart, it decided to sell diamonds and there too, demand slumped.