GVK Power gets approval to raise Rs 8,000 crore for debt repayment

By: | Published: November 17, 2018 2:18 AM

GVK Power and Infrastructure (GVKPIL) has received the shareholders’ approval to raise up to Rs 8,000 crore.

The proceeds will be utilised for the repayment of the outstanding financial obligations of the company and its subsidiaries/associates and group companies, the company added.

GVK Power and Infrastructure (GVKPIL) has received the shareholders’ approval to raise up to Rs 8,000 crore.
The resolution to raise the funds, by a combination of various options listed on the agenda of the annual general meeting (AGM) held recently, has been passed by the requisite majority, the company said in a BSE filing on Friday.

The company proposed to raise up to Rs 8,000 crore by disposal, sale, lease, hypothecation, mortgage, charge or otherwise of all or any of the immovable and movable properties of the company (including shares and securities held in any company).

The proceeds will be utilised for the repayment of the outstanding financial obligations of the company and its subsidiaries/associates and group companies, the company added.
Under the resolution, the board of directors had also sought approval from shareholders to dilute over 50% of equity stake in GVK Airport Holdings, a step-down subsidiary of the company through an initial public offering or private placement or stake sale.

The company proposes to utilise the proceeds for the repayment of the balance outstanding obligations of GVK Airport Developers, a wholly-owned subsidiary, and also to meet other financial needs of the company and its associate and group companies. Further, the company is planning to monetise the 200-acre land parcel in the Mumbai International Airport. The company said that it has received bids from 15 companies and is expected to be closed by December.

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