 "Hitachi Energy India seeks shareholders' nod to increase borrowing limit")
Hitachi Energy India on Thursday said it has sought shareholders' approval to raise its borrowing limit to Rs 11,500 crore.
The company's current borrowing limit is Rs 6,500 crore -- Rs 5,000 crore towards non-fund based and Rs 1,500 crore towards fund-based limits from its bankers/financial Institutions or from anyone, it said in an exchange filing.
Given the likely increase in business opportunities and new orders in the near future, the Board of Directors at their Meeting held on January 29, 2025, has provided their approval and recommended the same to the shareholders to increase the existing limit to Rs 11,500 crores by enhancing the non-fund based limit by Rs 5,000 crores.
As a result, the revised limits would be Rs 11,500 crores consisting of Rs 1,500 crores towards fund-based limits and Rs 10,000 crores towards non-fund-based borrowing facilities.
With the new high-value projects in pipeline, the company expects an increase in business growth in the near future. Such high-value projects usually require the issuance of Letter of Credit or Bank Guarantees, as and when needed, which in sum will increase the non-fund based facilities that the company would require, the company said.
The results of the postal ballot will be declared on March 25.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)