GVK Power shares up nearly 15% as firm seeks shareholders' nod to hike limit for loans
Bombay Stock Exchange (BSE) headquarters in Mumbai. Image Source: Reuters/Danish Siddhiqui
Shares of GVK Power and Infrastructure on Friday soared nearly 15% after the company sought shareholders' approval for increasing the maximum limit of loans and guarantees that can be given to other entities.
The stock climbed 14.87% to Rs 5.56 on the Bombay Stock Exchange (BSE).
On the National Stock Exchange (NSE), it soared 14.43% to Rs 5.55.
GVK Power and Infrastructure has sought shareholders' approval for increasing the maximum limit of loans and guarantees that can be given to other entities to Rs 15,000 crore from the current limit of Rs 10,000 crore.
In a BSE filing on Thursday, the company said it has sought approval of the shareholders through postal ballot for increasing the existing "overall limits by Rs 5,000 crore for making investments/giving loans/guarantees/providing securities in terms of Section 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 July 7, the filing added.
At 13:29 hours, the stocks of GVK Power and Infrastructure were trading up 12.19% or Rs 0.59 at Rs 5.43 per scrip on the BSE.