City-based infra developer Gayatri Energy Ventures, a subsidiary of Gayatri Projects, may dilute 10 to 15 per cent of its equity to raise Rs 400 crore as part of its proposed Rs 1,000-crore investment in Nelcast Energy Corporation (NECL).
"We have planned to make Rs 1,000-crore investment in NECL. About Rs 300 crore will be diverted from the proposed Rs 400 crore rights issue. Another Rs 300-350 crore will be raised from the external borrowings. The remaining Rs 400 crore will be raised through Private Equity. The stock dilution in GEVPL will be 10 to 15 per cent," company sources told PTI.
Gayatri Projects is a partner of Nagarjuna Construction in Nelcast Energy Corporation (NECL).
Nagarjuna Construction's energy arm NCC Power Projects said on Tuesday that it had acquired 55 per cent in Nelcast Energy for Rs 150 crore and Gayatri Projects owns the balance 45 per cent making it a joint venture power firm.
As part of its deal, Gayatri Energy Ventures will be investing Rs 1,000 crore in the Rs 7,000 crore NECL power project at Krishnapatnam in Nellore-coastal District in AP.
Meanwhile, Gayatri Projects in a statement said the board has given its consent to raise Rs 400 crore through a rights issue.
According to K G Naidu, CFO Gayatri Projects, the funds will be deployed mainly in power projects.
"Some funds will be used to repay some of the high interest borrowings, to meet the working capital requirements and to invest into various BOT road projects," Naidu said.