Gangotri allots Rs 8cr shares to promoter group

Gangotri Textiles Ltd has informed that the company has allotted 16 lakhs share warrants of Rs 50 each, amounting to Rs 8 crore, to its promoter group. Each share warrant will be convertible into one equity share at a rate of Rs 50 each (at a premium of Rs 45) within 18 months.

The company has executed loan documents for availing rupee term loan of Rs 257 crore for the company's expansion-cum-integration project at Coimbatore.

Mumbai-based SBI Capital Markets Ltd has arranged and syndicated this term loan for the company through a consortium of bankers. The consortium includes Canara Bank, Corporation Bank, State Bank of Indore, State Bank of Mysore, Syndicate Bank, State Bank of India, State Bank of Travancore and State Bank of Hyderabad.

The land for the project has already been acquired and construction work has started. To meet part of its fund requirements for the project, the company is coming out with the follow-on public issue of Rs 55 crore under book building process.

The company has already filed the DRHP with Sebi and is awaiting Sebi's clearance.