GVK Power to raise Rs 1800 crores through QIP

GVK Power & Infrastructure Ltd has announced that the shareholders of the Company at their Extraordinary General Meeting held June 30, 2009 had approved a proposal to issue further equity up to an amount of Rs. 2,500 Crores through QIP. Keeping the then market conditions in view, the Company had restricted the amount only to the extent, of Rs. 700 Crores and wait for some more time to raise the remaining funds.

The Board of Directors at its meeting held on October 14, 2009 has appointed Mr. Krishna Ram Bhupal as Additional Director of the Company.

The Board approved a proposal to raise funds through FCCB/FCEB/QIP/Equity/Debentures/Convertible Warrants etc., or such other permissible securities in one or more tranches not exceeding Rs. 1,800 Crores (inclusive of any green shoe option) subject to approval of the shareholders and other regulatory authorities, if need be.

The approval of the shareholders is being obtained through a Postal Ballot which is being dispatched to all the shareholders shortly.

The stock closed the day at Rs.47.20, up by Rs.3.35 or 7.64%. The stock hit an intraday high of Rs.47.55 and low of Rs.44.40.

The total traded quantity was 7087236 compared to 2 week average of 2034408.

Source : Equity Bulls

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