Indosolar is seeking shareholders' nod for doubling authorised share capital to Rs 1,000 crore at an extraordinary general meeting on December 30 for converting outstanding loans into equity under one-time settlement.
The board of directors, at its meeting on November 25, had approved the increase in the authorised share capital of the company to Rs 1,000 crore, from Rs 500 crore, the company said in a notice for the meeting.
The authorised share capital will be Rs 1,000 crore divided into 50 crore shares of Rs 10 each and 50 crore preference shares of Rs 10 each.
The company said negotiations are on with its lenders for resolution of outstanding loans and it has got approval for the proposal of one-time settlement with Union Bank of India.
Pursuant to the scheme, the company added that it needs to issue shares to the lenders by way of conversion of its outstanding loans and hence, the need to increase authorised share capital.
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