The shares of India's leading enterprise data services provider, Tulip Telecom have increased to touch its upper circuit limit during the trading on Tuesday after the company indicated that it is in talks with some parties for restructuring the company's long-term debt.
The shares of Tulip Telecom were locked in upper circuit at Rs 34.30 on 10:40 am on the Bombay Stock Exchange (BSE). The company that designs and manages communication networks of large enterprises is now discussing terms for moratorium on principal and interest payments with banks as well as on extending the repayment period.
Tulip had a total debt of Rs 3030 crore as of September and it not known as to how much of this debt will be restructured. The company has become the latest Indian firm to opt for the Corporate Debt Restructuring (CDR) mechanism, under which creditors agree to change easing of repayment terms.
"The debt-restructuring exercise will ensure better liquidity and enable the company to focus and strengthen its core operations," the company said in a release.
The shares had touched a high of Rs 34.30 and low of Rs 34 while the total volume touched 26,860 on the BSE.