GVK to raise Rs 8k cr via stake sale in airport biz
GVK Power and Infrastructure Limited PIL on Wednesday sought approval from shareholders to dilute over 50 per cent of equity stake, in GVK Airport...
Hyderabad: GVK Power and Infrastructure Limited (PIL) on Wednesday sought approval from shareholders to dilute over 50 per cent of equity stake, in GVK Airport Holdings Limited (GVKAHL), a step-down subsidiary of the company through an initial public offering (IPO) or private placement or stake sale.
The company also sought approval to raise up to Rs 8,000 crore from shareholders and an appropriate resolution was moved in the Annual General Meeting (AGM) held here. The Board of Directors sought to raise the amount for the repayment of the outstanding financial obligations of the company and its subsidiaries or associates and group companies.
The company proposes to utilise the proceeds for the repayment of the balance outstanding obligations of GVK Airport Developers Limited, a wholly-owned subsidiary, and also to meet other financial needs of the company and its associate and group companies.
"Subject to necessary approvals, if any, from all the concerned third parties and regulatory authorities including from the lenders, consent of the shareholders be and is hereby accorded to the Board of Directors of the Company (Board) (including the committee thereof) to raise funds up to an amount of Rs 8,000 crore," the resolution said.
A senior official of the GVK group said the resolution has been put up for voting by the shareholders and the results will be known shortly. GV Sanjay Reddy, vice-chairman of GVK said the land monetisation at the Mumbai International Airport is in the process and Request for Proposal has been issued for some of the plots.
"For few of the plots we have gone through the RFP. We have shortlisted (some parties). There is a lot of interest (among investors). More than 15 companies have participated. It is 15 to 20 acres of land," Reddy said. He said the company is expecting the bids to be closed by December-end.