GVK Power & Infrastructure shares surged nearly 15 per cent on Friday after the company sought shareholders’ approval for increasing the maximum limit of loans and guarantees that can be given to other entities to Rs 15,000 crore. The current limit is Rs 10,000 crore.
At 1.35 pm, shares of GVK Power & Infrastructure were trading 11.57 per cent up at Rs 5.40. The scrip opened at Rs 4.85 and has touched a high and low of Rs 5.56 and Rs 4.85, respectively, in trade so far. Later, the scrip closed 15.91 per cent up at Rs 5.61.
In a filing to the BSE, the company said it has sought approval of the shareholders through postal ballot for increasing the existing “overall limits by Rs 5,000 crore for making investments/giving loans/guarantees/providing securities in terms of Sec 186 of the Companies Act, 2013 read with Rule 13 of Companies (Meetings of Board and its Powers) Rules, 2014.”
Section 186 pertains to certain transactions entered into by a company directly or indirectly. These include loans given to any person or other body corporate and guarantee or security provided in connection with a loan to any entity.
The last date for voting on the postal ballot is July 7, the filing said.
Promoter’s were holding 54.25 per cent stake in the GVK Power as on March 31, 2016, while public held 45.75 per cent stake.