The Delhi Metro Rail Corporation (DMRC) has launched a rights issue to raise ₹7,131 crore from its shareholders.
DMRC is offering 7.13 crore shares with a face value of ₹1,000 each.
The rights issue has opened on Thursday and will close on January 11.
DMRC, which is a 50:50 joint venture of the Government of India and Delhi Government, has requested both stakeholders to infuse ₹3,565.64 crore each by way of their equity contribution.
DMRC is expected to use the proceeds from the rights issue to satisfy the Arbitral Award in favour of Reliance Infra-backed Delhi Airport Metro Express Pvt. Ltd. (DAMEPL).
“The decision to launch the rights issue may have been taken after DMRC failed to get any response from the GOI and Delhi Government on its request to share the total arbitration award,” said an industry source.
The Supreme Court had upheld an Arbitration Award of ₹7,000 crores in favour of DAMEPL on September 9, 2021.
Earlier, DMRC tried to raise loans from banks for the payment of award money to DAMEPL, but later on, it informed the Delhi High Court that if the company raises debt from the banks, it will fall into a debt trap as it cannot service the debt through its revenue.
DMRC then approached the GOI and Delhi Government for financial assistance. But it did not get any funds.
Yesterday, the Supreme Court directed the Delhi High Court to ensure that the arbitration award is executed within 3 months.