GMR Power board approves ₹1,200-cr fundraising via preferential issue

GMR Power and Urban Infra Ltd on Wednesday (December 17) said its board has approved a proposal to raise up to ₹1,200 crore through the issuance of equity shares and convertible warrants on a preferential basis, subject to shareholder and regulatory approvals.

As per the exchange filing, the company plans to issue up to 6.61 crore equity shares of face value ₹5 each at an issue price of ₹120.88 per share, including a premium of ₹115.88, aggregating up to ₹800 crore. These shares will be allotted to non-promoter investors.

In addition, the board approved the issuance of up to 3.30 crore convertible warrants, each carrying the right to subscribe to one equity share at an issue price of ₹120.88 per warrant, including a premium of ₹115.88. The warrants, aggregating up to ₹400 crore, will be allotted to a promoter group entity.

The proposed allotment will be made under the preferential issue route on a private placement basis.

Synergy Industrial and Power Metals Ltd and Credit Solutions India Trust have been identified as proposed allottees for the equity shares, while Hyderabad Jabilli Properties Private Ltd will receive the convertible warrants.

The issue price for both equity shares and warrants has been fixed at ₹120.88, which is also the floor price determined under SEBI ICDR regulations, the exchange filing stated.

Shares of GMR Power and Urban Infra Ltd ended lower on Wednesday, December 17, by 1.63% at ₹113.75 on the NSE.

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