 "GVK group to raise Rs 1,500 cr")
GVK group, which runs airports in Mumbai and Bangalore and power plants has a consolidated debt of over Rs 22,000 crore. The ultimate holding company GVK Power & Infrastructure Limited and holding companies in energy, airport and transport businesses have a debt of about Rs 3,000 crore.
The group’s chief financial officer A Issac George confirmed the QIP plan and said the amount would be used to reduce debt of the holding companies which was raised to acquire additional stake in Mumbai and Bangalore airports. “We have the board’s approval and will seek shareholder approval next month for the QIP,” he said.
In its notice to shareholders, the company has sought approval to raise Rs 1,500 crore which includes a green shoe option to retain Rs 500 crore from excess subscription.
The company's net loss in FY 2014 widened to Rs 368 crore from Rs 335 crore in previous fiscal and power division contributed to most of the loss as operations were impacted due to non availability of gas and coal. In its post result announcement GVK group had said it is confident of securing approval from banks for rescheduling of loans and securing gas for its plants.
Issac George also welcomed RBI's decision to ease infrastructure financing and government's move to allow Coal India to import coal and sell it to power plants after pooling it with domestic coal. He said RBI'S move would help in lowering interest costs for projects as banks will be able to raise bonds for pass on the benefit to infra companies.