CG Power and Industrial Solutions to seek shareholders' nod to raise borrowing limit

CG Power and Industrial Solutions will seek shareholders' approval at the upcoming annual general meeting for increasing borrowing limit to Rs 5,000 crore.

In the current legal framework, the company's board of directors cannot borrow money in excess of the amount of the paid-up share capital, free reserves and securities premium without the approval of its members by way of special resolution.

The annual general meeting is scheduled for December 14.

The company's borrowings as on March 31 stood at Rs 2,455.39 crore (fund-based, including short-term loans) and Rs 1,380 crore (non-fund based), it said in annual report released on Wednesday.

Keeping in view the existing borrowing and additional fund requirements and given the current financial condition of the company, it is in urgent need of both long-term and working capitals, the firm said.

It added that the approval of the members is sought for availing borrowings up to an amount of Rs 5,000 crore to meet the company's immediate funding requirements.

The firm's management is in the process of identifying potential sources of capital, including banks, financial institutions, lending institutions, bodies corporate and individuals, it added.