Visa Steel is strongly into the green today morning. The stock is up over 13.5% at Rs.16.40 with an intra day high at Rs.17.30. its 52-week high is at Rs.25. Volumes are huge at 72,000 shares today alone compared to a mere 3000 shares over two weeks average.

Today morning, before the market opened for trading, the company informed the exchanges that its Joint Lenders Forum (JLF) meeting held on September 22, 2015 have decided to invoke Strategic Debt Restructuring (SDR) pursuant to RBI Circular dated June 08, 2015. The Company is in discussion with Lenders for preparing a conversion package to enable inviting a strategic investor in its Special Steel Business. The company at end of FY15 had a consolidated debt of Rs.3100 crore.

As per the rules of SDR, banks are now allowed to take over management of the company in cases where dent restructuring has failed.  As per rules, Banks that decide to recast a company's debt under "strategic debt restructuring" (SDR) scheme must hold 51% or more of the equity after the debt-for-share conversion. Lenders can now convert debt to equity within 30 days of the review of the company's account. It also allows lenders who acquire shares of a listed company under a restructuring to be exempted from making an open offer.

Three more companies, prior to this, have gone under the SDR – Electrosteel Castings, Jyothi Structures and Lanco Infratech.