GVK Power to seek nod for ₹1,000-cr qualified institutional placement

GVK Power & Infrastructure Ltd will seek shareholders nod for an enabling resolution to facilitate the company raise up to ₹1,000 crore, with a Greenshoe option to retain higher subscription of about ₹500 crore.

This could be by way of qualified institutional placement or any other mechanism.

The diversified infrastructure company, which is seeking to bring down its consolidated debt on the books, is looking at raising funds through either strategic sale of equity or by way of QIP for quite some time.

Even though it had secured a nod from its shareholders during the last annual general meeting in 2014, it did not approach the market to raise these funds as the market conditions and sentiment were subdued.

With the enabling resolution lapsing, it will seek shareholders nod again in the ensuing annual general meeting slated to be held next month.

The company is also in the process of slashing its debt at the holding company and some of the verticals to free up equity for new projects.

The Hyderabad-based company had in the past negotiated to raise funds from its airport vertical by divesting stake.

Earlier, it had almost struck a deal with Changi Group, but it fizzled out.

The GVK Group is in the process of coming out with an offer of its airport vertical seeking to raise up to ₹1,500-1,800 crore. It had mandated some banks and is in the process of finalising paper work for the draft red-herring prospectus, sources said. With both the GVK airports in Mumbai and Benguluru performing well, the company expects the stake divestment would help it reduce its consolidated debt of about ₹22,000 crore, partially.

Meanwhile, it is also seeking to take part in some of the upcoming airport projects for bidding within the country.

On Wednesday, GVK shares closed at ₹9.29, up 0.87 per cent, on the BSE.