Trending Small Cap Stock: Supreme Infrastructure on a restructuring mode

Supreme Infrastructure which was burdened with debt of Rs.2401 crore has got huge sigh of relief, as the Reserve Bank of India’s oversight committee has approved a debt restructuring package for them under the central bank’s scheme for sustainable structuring of stressed assets (S4A).

As per the exchange filing, the total debt has been divided into two parts sustainable and unsustainable debts from which as per S4A scheme, the sustainable debt is considered at Rs.1271.30 crore (52.75%) while balanced debt of Rs.1138.74 crore (47.25%) is considered as unsustainable debt.

The unsustainable debt of Rs.1138.74 crore will be converted into optionally converted debenture (OCD) where it can be transformed into equity shares by the lenders if the company fails to repay the debt at a stipulated time.

In order to fit in the eligibility criteria of the scheme, the project of the company should have commenced with the commercial operation and the total exposure should be more than Rs.500 crore, including lenders who need to have provided for at least 20 per cent of the total loans.
 
On Friday’s trade, the stock opened at Rs.96.30 per share touching a high of Rs.96.90 and low of Rs.90.40 and at 1:11 pm the stock is quoting at Rs.92 per share down with 3.21 per cent.