Shares of SPML Infra rose over 5% in Wednesday’s session, December 31after the company informed exchanges that its board has approved the allotment of equity shares following the conversion of an existing loan into equity.
At around 11:21 AM ISTSPML Infra shares were trading at Rs 179.50 on the NSEup 5.20%compared with the previous close of Rs 170.62.
What is driving the stock movement?
The stock moved higher after the board approved the allotment of 11,44,436 equity shares at an issue price of Rs 276 per share to National Asset Reconstruction Company Limited (NARCL). The allotment has been carried out pursuant to the conversion of an existing loan, as disclosed by the company in a regulatory filing.
Following the allotment, the shares will rank pari passu with the existing equity shares of the company.
Why this development matters
The equity conversion helps SPML Infra reduce outstanding debt obligations and strengthens its balance sheet. The involvement of NARCL, which was set up to resolve stressed assets in the banking system, also reflects ongoing efforts to address legacy financial issues through structured resolution mechanisms.
Stock performance snapshot
During the session, the stock touched an intraday high near Rs 182 before easing slightly. Trading volumes also picked up following the disclosure, indicating active investor participation.
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