Shares of Chennai-based debt ridden Southern Petrochemical Industries Corporation (Spic) and its unit Tuticorin

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Alkali Chemicals and Fertilizers were locked in upper circuit limits on Monday, buoyed by news that the group would restart its operations at Tuticorin in Tamil Nadu by September.

On Sunday media reports quoted the group’s chairman A C Muthiah as saying that union minister for Chemicals and Fertilizers M K Alagiri is expected to kick-start the resumption of operations of Spic, Tuticorin, in September.

Urea production at the Tuticorin plant was suspended in March 2007 because of mounting debt and lack of working capital. Since then the group is trying to put the operations back on track by raising money by selling assets and through a restructuring plan.

Asset Reconstruction Company of India (Arcil) has taken over 80-85 per cent of the liability of the company. As part of the restructuring programme, the promoters of the company had infused Rs 150 crore in Spic by way of preferential allotment.

The promoter group’s shareholding will be 26.90 per cent after the conversion of Arcil’s debt and 40.22 per cent after all the fully and convertible preference shares are converted into equity shares. The outstanding debt of the company is about Rs 2,850 crore