Gulf Oil Corporation Ltd will seek nod from its shareholders to increase the company’s borrowing limit from the existing cap of Rs 1,000 crore to Rs 2,000 crore, create charge and to extend inter-corporate deposits to group firms.
The board of directors had passed the enabling resolution and the company is now seeking nod from the members through a postal ballot.
The Hyderabad-based company, which is into manufacture of oil lubricants, explosives and has diversified into real estate development, through joint ventures, will also seek nod from the members to create charge on the immovable properties up to a limit of Rs 900 crore to Hinduja Realty Ventures Ltd.
Gulf Oil, a Hinduja Group company, and Hinduja Realty had signed up to develop an integrated real estate project in Bangalore. It has also taken up another major project in Hyderabad. Both these will be developed through group ventures.
The charge will be created in favour of Hinduja Ventures. The members have authorised the board of directors to negotiate and finalise the terms for creation of such charge.
Inter-corporate loans
The Deputy Company Secretary of the company, A. Satyanarayana, in a notification to the exchanges has informed that the members will also consider a resolution which enables the Gulf Oil management to extend inter-corporate loans.
The overall loans outstanding to any particular body corporate or company shall not exceed Rs 50 crore at any point. This has an upper cap of Rs 100 crore.
These ICDs could be extended to associated companies Indusind Media & Communication Ltd, Hinduja National Power Corporation Ltd and IDL Explosives.