GMR Holdings, the holding company of GMR Infrastructure, on Monday said it plans to issue non-convertible debentures worth Rs 300 crore through a private placement.
GMR Holdings has a 62.74% shareholding in the infrastructure firm, in which the total promoter stake was 64.11% as of September 2014. The shares of GMR Holdings are divided equally between the group’s founder G Mallikarjuna Rao and his three children.
“GMR Holdings has informed BSE that the Board of Directors of the company at its meeting held on December 21, 2014, approved the issue of 3,000 non-convertible debentures of nominal value of Rs 10,00,000 each aggregating to Rs 300 crore, through private placement, subject to the approval of shareholders,” the company said in an update.
“Further, the company has informed that, at the extra-ordinary general meeting (EGM) of the shareholders of the company held on December 22, 2014, the shareholders approved the aforesaid issue.”
In its EGM notice, communicated to the stock exchanges, GMR Holdings said it was proposing the issue of non-convertible debentures in order to facilitate repayment of its existing debt and to make further investments in subsidiaries and associate companies. The issue price of Rs 10 lakh per debenture was fixed based on the funding requirements of the company and expected returns of the investors, as per the present market conditions, said the EGM notice.
At the meeting, the company also proposed a second resolution seeking approval from its shareholders to secure facilities in favour of lenders to secure financial assistance upto Rs 5,000 crore. The company, in its notice, also said it proposes to pledge the equity shares of GMR Infrastructure, subsidiary company to the extent as required by the lenders to secure the debentures.