GVK Power to seek shareholders' nod to raise additional loans

GVK Power & Infrastructure Ltd will seek shareholders' nod to borrow up to Rs 2,000 crore and also raise up to Rs 1,000 crore through issue of foreign currency convertible bonds or a qualified institutional placement issue, with a green shoe option of another Rs 500 crore.

The 20th Annual General Meeting is slated for August 13 wherein the company management will seek shareholders' nod to offer QIP/FCCBs. Necessary clearances to facilitate the process will also be secured from the RBI and SEBI.

In a notice to shareholders placed in the stock exchanges, the company said that the GVK management will also seek their approval to re-appoint GVK Reddy as Chairman and Managing Director of the company for a period of five years.

The company's move to seek additional loans is to meet the requirements for the ongoing projects and also augment additional resources towards equity in new projects and reduce the existing debt commitments.

The Hyderabad-based diversified company, which has a portfolio of two major airports in the country at Mumbai and Bangalore, and runs several power projects and road projects, is looking at augmenting additional funds to bring down its debt, which has gone up to over Rs 20,000 crore.

The company had raised funds to increase its stake in both Mumbai and Bangalore international airport projects. It is now seeking shareholders nod to raise additional funds so that the loans could be brought down at the holding company level.

GVK is also at advanced stage of divestment of stake in the airport projects and also in the Hancock coal mine project in Australia.

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