GVK, Nagarjuna to raise $680 mn via equity sale

HYDERABAD: The number of infrastructure firms planning to raise funds through equity divestment seems to be rising by the day. GVK Power & Infrastructure Ltd (GVKPIL) and Nagarjuna Construction Company Ltd (NCCL) have obtained shareholder approval to raise funds through equity sale, according to notifications by the two companies with the BSE on Wednesday.

The board of GVKPIL has approved the proposal to raise up to a sum of $500 million by allotment of equity shares to private equity investors or qualified institutional buyers (QIB), among others. Company officials had earlier said that about Rs 1,000 crore would be raised through equity sale in the next two years.

The sum raised would be used to fund the company's foray into new sectors like real estate and port development, apart from funding the power and infrastructure projects that are in various stages of development.

NCCL has also acquired the board's approval to raise about $180 million (about Rs 810 crore) through issue of equity shares to QIB, or issue of GDR or FCCB. The board also approved the issue of 25 lakh warrants to AVSR Holdings Ltd, an investment firm owned by the promoters, as a preferential issue. The board has also approved in-principle, the proposal to raise FII limits in the company to 74%, from 49% at present.