Diamond Power approves Rs 2,000 crore QIP fundraising plan
Diamond Power Infrastructure Limited has approved a proposal to raise up to Rs 2,000 crore through a Qualified Institutions Placement (QIP), doubling its earlier fundraising limit of Rs 1,000 crore.
The decision was taken by the company’s Board of Directors at its meeting held yesterday. The proposed fundraising will be carried out through the issuance of equity shares to Qualified Institutional Buyers (QIBs) in one or more tranches, subject to necessary approvals.
Fundraising plan
According to the company, the QIP is intended to support compliance with the Minimum Public Shareholding (MPS) requirements prescribed under the Securities and Exchange Board of India (SEBI) regulations.
The board noted that the company is currently non-compliant with the MPS requirements and intends to achieve full compliance at the earliest. The company stated that shareholder approval for the proposal will be sought through a postal ballot process.
Diamond Power is a manufacturer of power transmission and distribution equipment, with operations spanning cables, conductors, transformers and related products.
The enhanced fundraising limit is expected to provide the company with greater flexibility in accessing institutional capital while addressing regulatory shareholding requirements.
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