Financially Troubled Diamond Power may be Acquired
Diamond Power Infrastructure Ltd., the Vadodara based manufacturer of Power cables, conductors, transformers and towers informed on 14th March that the lenders have in principal given approval to the proposal given by CKP Group to infuse Rs. 1,200 Cr into the company under Strategic Debt Restructuring (SDR) scheme. The company may be shortly acquired by CKP Group.
The company has been in troubled waters since quite some time. Diamond Power has been reeling under heavy losses since past 3 years (FY15, FY16, FY17). The net loss for Q4 FY17 (Jan-March 2017) was Rs. 316.9 Cr on an income of Rs. 197 Cr.
Earlier in January 2017 the lenders converted their debt of Rs. 885 Cr to equity under SRD scheme. Consequently the lenders, led by Bank of India (20% stake) command over 70% stake in the company. Whereas the promoter’s stake is a little over 11%.
About Diamond Power Infrastructure Ltd.: Diamond Power is a Vadodara based company manufacturing Power Cables – LV, HV, UHV (upto 550KV), flexible cables, Conductors, Towers and Transformers. The company has also done EPC projects in the T&D space.