GVK Power shares soar 16% on proposal to hike limit for loans

Mumbai: Shares of GVK Power & Infrastructure today ended with nearly 16 percent gains after the company sought shareholders' approval for increasing the maximum limit of loans and guarantees that can be given to other entities.

The stock zoomed 15.91 percent to settle at Rs 5.61 on BSE. During the day, it surged 19.83 percent to Rs 5.80.

On NSE, it soared 15.46 percent to close at Rs 5.60. In terms of volume, 25.30 lakh shares of the company were traded at BSE and over one crore shares changed hands at NSE during the day.
GVK Power & Infra 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 yesterday, 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 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 July 7, the filing added.