GVK Power and Infrastructure gets shareholders' nod to raise Rs 80 billion

GVK Power and Infrastructure on Friday said that it has got shareholders' approval to raise up to Rs 80 billion.

The resolution to raise the funds, by a combination of various options listed on the agenda of the annual general meeting (AGM) held on Wednesday, has been passed by the requisite majority, the firm stated in a BSE filing Friday.

The company proposed to raise up to Rs 80 billion 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 the outstanding financial obligations of the company and its subsidiaries/associates and group companies, the company added.

Under the resolution, the board of directors had also sought approval from shareholders to dilute over 50 per cent of 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 the 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.