Gammon India, construction and engineering company, witnessed a sharp rise in share price on Tuesday after the company announced that the corporate debt restructuring (CDR) lenders i.e banks are likely to take control of the company under the Strategic Debt Restructuring (SDR) scheme.

The company said, 'Corporate Debt Restructuring Empowered Group-(CDR EG) in its meeting held on Nov. 23, 2015 has discussed and noted the invocation of Strategic Debt Restructuring (SDR) in the company by the CDR Lenders, pursuant to RBI Circular dated June 8, 2015.'

Gammon India has decided to convert part of company's Rs 150 billion debt into equity in a prelude to changing its management in a so-called strategic debt restructuring (SDR) exercise.

As per the Reserve Bank of India's SDR norms, announced on June 8, banks are allowed to convert their debt into majority equity in a company where they feel the need to change management.

Shares of Gammon India are trading at Rs 15.49, up Rs 2.58, or 19.98% at the Bombay Stock Exchange (BSE) on Tuesday at 2:11 p.m.

The scrip has touched an intra-day high of Rs 15.49 and low of Rs 13.50. The total volume of shares traded at the BSE is 1,007,635.