Shares of Peninsula Land were up nearly 10 per cent on Wednesday after the board approved raising up to Rs 41.7 crore through a preferential issue of shares and warrants to a promoter group entity.

The Ashok Piramal group company has also managed to stave off insolvency proceedings by its debenture holders after a subsidiary Truewin Realty reached a settlement agreement with debenture holders earlier this month. The subsidiary had an exposure of around Rs 44 crore in outstanding non-convertible debentures. While the terms of the settlement were not spelt out, sources indicated that there were conditions involved in terms of meeting some milestones

Peninsula Land also said it has settled and repaid loans taken from RBL Bank. The company had been defaulting for several months on loans taken from RBL Bank as well as State Bank of India. In early January the total indebted amount was Rs 432 crore and the default amount, including interest and principal, was about Rs 88 crore.

The company is issuing 1.45 crore shares and 1.53 crore convertible warrants at Rs 14 each to Miranda Tools, a member of the promoter group. Each warrant is convertible into one equity share.

At 10.12 am shares of Peninsula Land were up 9.8 per cent at Rs 14.05 on the National Stock Exchange. The stock has appreciated over 36 per cent in the last six months.