The Hindu Business Line : GVK Power to raise funds through QIBs

Hyderabad, June 3 GVK Power & Infrastructure Ltd is set to issue equity shares to Qualified Institutional Buyers (QIBs), both domestic and international, to meet the funding requirements for its various ongoing projects.

“The entire process could take up to one and half months and the enabling resolution allows us to issue and allot shares not exceeding Rs 2,500 crore,” Mr Isaac A. George, Chief Financial Officer, said.

“The offer of shares of up to 25 per cent of the equity will be in the listed entity and is aimed at meeting the requirement of various ongoing projects,” Mr George told Business Line.

The company’s board, which met here today, approved a resolution to allot shares to QIBs and also issue warrants convertible into equity shares. The company had earlier secured clearance to hike the authorised capital from Rs 177 crore to Rs 250 crore.

Asked if they were already engaged in talks with some potential investors, Mr George said several investors, including private equity players, have evinced interest based on the company’s strengths. However, it all depends on who actually takes a call to invest in the company once the offer is made.

The company has enhanced the power production capacity to nearly 900 MW as natural gas from the Krishna-Godavari has begun to flow into the power projects. These projects were stuck for want of gas.

The company has projects worth nearly Rs 20,000 crore under various stages of execution through its subsidiaries and associate companies.

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