Outcome of Board Meeting for Allotment of Equity Shares on Preferential Basis for consideration other than cash.
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
GTV Engineering Ltd has allotted 39,42,046 equity shares at Rs. 59.65 per share (face value Rs. 2, premium Rs. 57.65), aggregating to approximately Rs. 23.52 crores, on a preferential basis to GTV Infrastructures Private Limited (GIPL), a promoter group entity. The allotment is on a share swap basis — no cash was raised. In exchange, GTV Engineering acquired 35.31% stake (1,12,56,250 equity shares) in Chirchind Hydro Power Private Limited (CHPPL), a hydro power company. With this acquisition, CHPPL has become a subsidiary of GTV Engineering, and Shivalik Energy (CHPPL's subsidiary) has become a step-down subsidiary. The paid-up equity capital of the company has risen from Rs. 9.37 crores (4.69 crore shares) to Rs. 10.16 crores (5.08 crore shares), an expansion of about 8.4%. Post-allotment, GIPL holds 7.76% in GTV Engineering.
This is a non-cash, share-swap acquisition that diversifies GTV Engineering into hydro power generation without straining its cash flows. However, existing shareholders face dilution of around 8.4% as new shares are issued to the promoter group entity, and the move expands the consolidated group structure with new subsidiaries.