GMR Power allots shares and warrants worth about Rs 900 crore on preferential basis
GMRP&UI · price
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On the reaction day the stock moved 0.2 pts more than Nifty Microcap 250 and 0.9 pts less than its Power Generation peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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The company allotted about 6.6 crore equity shares and 3.3 crore warrants at Rs 120.88 each on a preferential basis, raising about Rs 900 crore. Non-promoters Synergy Industrials and Credit Solutions India Trust received bulk of the shares. Promoter group entity Hyderabad Jabillli Properties got warrants. Warrants can be converted into shares within 18 months on paying the remaining 75 percent. Paid-up equity capital rose to Rs 390 crore.
Dilution risk from new shares and possible future warrant conversion, but funds raised can support growth or reduce debt.