Gammon India approves CDR, stock jumps 6%

Civil engineering construction company Gammon India rallied nearly 6 percent intraday on Thursday after the board of directors approved company's corporate debt restructuring (CDR).

After reviewing the current financial position of the company, the board members decided to initiate discussions with its lenders for realigning debts through the corporate debt restructuring process, according to a company's statement sent to exchanges.

Sluggish industrial capital expenditure has squeezed orders for Indian infrastructure companies and big projects have been stalled by a slow approval process and inadequate capital.

Gammon India has secured and unsecured loans worth Rs 8397 crore on consolidated basis as of March 31, 2012.

Promoters hold 35.26 percent stake in the company as of December 2012.

Shares went up 1.7 percent to Rs 27.25 on Bombay Stock Exchange at 10:33 housr IST.

(With inputs from Reuters)