Videocon Industries hits 5% UC

Videocon Industries has been consistently breaching the lower circuit and hitting new lows. Yesterday, it hit a new low at Rs.12.10.But today, changing the trend after a long time, the stock breached the 5% upper circuit at Rs.12.85.

The stock as moved up on unconfirmed news report that Videocon, which was named in the second list of distressed assets by RBI, seems to have finalized a resolution plan through some deep restructuring, which sources say, is also likely to be accepted by the banks by end of this month.

The plan is spread over 15 years and even the banks will not have to suffer any loss as the company plans to repay principal as well as interest.

The company’s total debt is over Rs.47,000 crore and it plans to extinguish to the extent of Rs.10,000 crore through sale of land it holds in Mumbai, Bangalore, Kolkatta and Chennai. It also plans to raise, every year, around Rs.2000 to 3000 crore.