Diamond Power Infrastructure will seek shareholders' approval to raise its borrowing limit to Rs 3,000 crore in its annual general meeting on December 14, according to a regulatory filing.
It company requires to borrow funds from time to time to meet both its short and long-term business objectives from various external agencies like banks, financial institutions, bodies corporate, individuals or other kinds of lenders.
The total amount of such borrowings as well as the outstanding at any time cannot exceed the aggregate of paid-up capital and free reserves of the company, except with the consent of the members as per Companies Act 2013, it explained.
The company felt that the existing limit is not adequate and needs enhancement, accordingly, the resolution has been proposed to increase the borrowing limit to Rs 3,000 crore, the filing said.
Its Board of Directors recommended the resolution as set out in item no 8 of the accompanying notice for the approval of the shareholders as a special resolution in the annual general meeting on December 14, it added.
It will also seek members' approval to empower the Board of Directors to exercise the power to sell, lease or otherwise dispose of the whole or substantially the whole of any undertaking(s) of the Company, only with the approval of the members of the Company by way of special resolution (for an amount of up to Rs 3,000 crore), as per the filing.
It will also seek shareholders' approval to authorise the Board to give loans,make investments and/or provide guarantees/security(ies) up to a financial limit of Rs 100 crore over and above limits, it noted.