GVK Power seeks shareholders’ nod to hike limit for loans1 min read . Updated: 09 Jun 2016, 05:58 PM IST
GVK Power has sought shareholders' approval for increasing the maximum limit of loans and guarantees that can be given to other entities to Rs15,000 crore from Rs10,000 crore
New Delhi: GVK Power and Infrastructure Ltd has sought shareholders’ approval for increasing the maximum limit of loans and guarantees that can be given to other entities to ₹ 15,000 crore. The current limit is ₹ 10,000 crore.
In a filing to the BSE, the company said it has sought approval of the shareholders through postal ballot for increasing the existing “overall limits by ₹ 5,000 crore for making investments/giving loans/guarantees/providing securities in terms of Sec 186 of the Companies Act, 2013 read with Rule 13 of Companies (Meetings of Board and its Powers) Rules, 2014."
Section 186 pertains to certain transactions entered into by a company directly or indirectly. These include loans given to any person or other body corporate and guarantee or security provided in connection with a loan to any entity. The last date for voting on the postal ballot is 7 July, the filing said.
A diversified group, GVK saw its net loss widen to ₹ 407.70 crore for the latest March quarter.
On Thursday, shares of GVK Power and Infrastructure rose 6.61% to close at Rs4.84 while the benchmark Sensex ended the day 0.95% lower at 26,763.46 points.