GVK Power Promoters not to subscribe for warrants issue

GVK Power & Infrastructure Ltd has announced that the Company had taken a resolution for the issue of further capital up to USD 500 million (Rs 2,500 Crores) through QIP and along with the same it had also taken a resolution to enable the Promoters to subscribe to 30,00,00,000 equity shares through convertible warrants.

The resolution to enable the Promoters and Promoter Group to subscribe to the equity of the Company through convertible warrants was approved with the express aim of allowing the Promoters to claw back their holding to 55% of the outstanding capital.

As the Company has restricted its QIP to USD 150 million (Rs 716.85 Crores), the Promoters and Promoter Group shareholding in the Company has come down only to 54.25% of the outstanding share capital after QIP issue.

As the Promoters and Promoter Group are holding 54.25% of the current share capital of the Company, which is only marginally lower than the threshold limit of 55%, the Promoters and Promoter Group of the Company has decided that they would not like to subscribe to the proposed convertible warrants offered by the Company.

The stock closed the day at Rs.41.40, up by Rs.1.85 or 4.68%. The stock hit an intraday high of Rs.41.70 and low of Rs.39.65.

The total traded quantity was 4635674 compared to 2 week average of 7196995.

Source : Equity Bulls

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