JSW Energy to seek shareholder nod to raise up to Rs 5,000 cr
JSW Energy on Wednesday said it will seek shareholders' approval to raise to Rs 5,000 crore via equity shares, bonds, and other such securities in its annual general meeting on August 4, 2021.
The proposed resolution enables the board of directors to issue securities for an aggregate amount not exceeding Rs 5,000 crore or it's equivalent in any foreign currency, the notice for the AGM said.
The funds would be used to finance the requirements of capital and revenue expenditure including working capital, to meet the long-term capital requirements of the company and its subsidiaries, joint ventures, and affiliates, including investment in subsidiaries... and for any other general corporate purposes, it said.
The resolution has proposed to enable the board to create, issue, offer and allot equity shares, global depository receipts, American depository receipts, foreign currency convertible bonds, convertible debentures, non-convertible debentures with warrants, among others.
The proposed resolution also authorizes the board of directors of the company to undertake a qualified institutional placement (QIP) to qualified institutional buyers (QIBs) for raising capital.
The company also said that an enabling resolution was passed by the members at the 26th annual general meeting (AGM) held on August 13, 2020, for Rs 5,000 crore, which was valid for 12 months and under which, no amount was raised by the company.
Keeping in mind the objective of reducing the overall cost of capital, and diversifying access to an alternate pool of liquidity and given the prevalent environment of low global interest rates, the JSWHEL), a material subsidiary of the company, raised USD 707 million fixed-rate senior secured green 144A / Reg S Bond for a 10-year tenor at 4.125 percent in May 2021 (notes).
The proceeds from the issuance were to be used towards repayment of existing green project-related Rupee denominated indebtedness.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)