Source : PTI | Lubes maker GP Petroleums Ltd on Friday said its board has approved the company’s plan to raise up to ₹130 crore via NCDs and OCDs to accelerate growth.
The company plans to utilise the proceeds to fund its ongoing business expansion and fulfil its working capital requirements, GP Petroleums, the maker of IPOL brand of lubes, said.
The company said it will issue up to 300 non-convertible debentures (NCD) aggregating up to ₹30 crore for 36 months and up to 1,000 optionally convertible debentures (OCDs) aggregating up to ₹100 crore for 18 months, each with a face value of ₹10 lakh.
Both instruments will be issued to RevX Special Credit Opportunities Fund II on a private placement basis, it said.
Both instruments will be issued in one or more tranches, the company said and added the OCD issue is subject to necessary statutory approvals, including shareholders’ consent through the upcoming postal ballot.
“The proposed financing will provide us with the financial agility to accelerate our growth plans, both organic and inorganic. It also reflects the confidence in our strategic vision to strengthen our market position in the hydrocarbon space while giving us the financial foundation towards unlocking long term value for our stakeholders,” Dilip Vaswani, non-executive Director, GP Petroleums Ltd, said.
Equity shares arising from conversion of OCD are proposed to be listed on BSE and NSE, the company said.
The NCDs and OCDs carry a coupon rate of 13 per cent per annum, compounded monthly and paid quarterly, it stated.
Additionally, the company will pay 1.5 per cent of additional coupon on deemed date of allotment, according to the company.
