Gujarat Pipavav shareholders approve raising up to Rs 5,000 cr

Gujarat Pipavav Port Ltd (GPPL) today said it has received shareholders consent to raise a total of up to Rs 5,000 crore.
The company had approached its shareholders earlier this month through two special resolutions to raise the amount.
GPPL approached shareholders for authorising the Board to "borrow monies that may exceed aggregate of the paid-up share capital and free reserves of the company provided the total amount... Shall not at anytime exceed Rs 2,500 crore or the aggregate of the paid-up share capital and free reserves of the company, whichever is higher," it said in a BSE filing.
Similarly, through another special resolution, the firm sought shareholders nod for authorising the Board to create charges, mortgages and hypothecations. This will be in addition to the existing charges, mortgages and hypothecations created by the company, it added.

Board can create charges, mortgages and hypothecations on movable and immovable, both present and future, and in such a manner as Board deems fit for securing loans and borrowings, the filing said.
This is subject to the condition that "The aggregate loan and borrowings for which the charges are already created/ to be created shall not at any time exceed Rs 2,500 crore or the aggregate of the paid-up share capital and free reserves of the company, whichever is higher," the filing said.

The shareholders have approved both the resolutions, it added.
The Mumbai-based firm reported a flat net profit at Rs 80.42 crore for the April-June quarter this fiscal.

The private sector port had posted net sales of Rs 172.87 crore against Rs 155.81 crore during the same quarter.