GVK Power and Infrastructure has got shareholders’ approval to raise up to Rs 8,000 crore. According to a BSE filing, the resolution to raise funds, by a combination of various options listed on the agenda of AGM held on Wednesday, has been passed by a requisite majority.
GVK Power plans 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 outstanding financial obligations of the company and its subsidiaries/associates and group companies, the filing added.
Under the resolution, the board of directors had also sought approval from shareholders to dilute over 50 per cent equity stake in GVK Airport Holdings Ltd, 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 balance outstanding obligations of GVK Airport Developers Ltd, a wholly-owned subsidiary, and also to meet other financial needs of the company and its associate and group companies.