In the wake of loan default worth Rs 700 crore, Power Finance Corporation Ltd (PFC) has acquired over 23 per cent stake in Shree Maheshwar Hydel Power Corporation ltd (SMHPCL) by invoking pledged shares and partially converting debt into equity.
PFC is one of the lenders of Shree Maheshwar Hydel Power Corporation Ltd and have given a loan of Rs 700 crore to SMHPCL along with guaranteeing Rs 400 crore to the bond holders of SMHPCL. Further the board of SMHPCL has also “approved allotment of 6,61,00,000 equity shares of Rs 10 each to PFC consequent upon partial conversion of sub debt loan to SMHPCL to the extent of Rs 66.10 crore”.
So let’s discuss some questions related to this post :
1. Name the company which has acquired 23% stake in SMHPCL ?
2. Expand the term SMHPCL .
Courtesy : Economic Times