GVK Power & Infrastructure to raise upto Rs 3000 crore

GVK Power & Infrastructure Ltd has announced that the Board of Directors of the Company at its meeting held on June 03, 2009, inter alia, has approved the fund raising proposal, subject to the approval of the shareholders under Section 81 (1A) of the Companies Act, 1956 and other relevant approvals under applicable law.

The Board approved the issue and allotment of equity shares of the Company, not exceeding Rs 2,500 crores (with a Green Shoe option to retain upto Rs 500 crores from the excess subscriptions received), pursuant to an offer to qualified institutional buyers under Chapter XIIIA of the Securities and Exchange Board of India (Disclosure and Investor Protection Guidelines) 2000.

The Board also approved the issue and allotment of such number of share warrants or other securities convertible in aggregate to 30,00,00,000 equity shares of Re.1 each, at or above the floor price as may be determined in accordance with the SEBI Guidelines on preferential issue of securities to Promoters and Promoter group (which term shall include individuals or companies or such other juristic persons as may be permitted under the applicable laws).

The stock was trading at Rs.47.70, up by Rs.2.80 or 6.24%. The stock hit an intraday high of Rs.49 and low of Rs.44.60.

The total traded quantity was 7590996 compared to 2 week average of 6955172.

Source : Equity Bulls

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