Thereby, as part of preliminary discussions, the company has signed an MoU with the said investor on July 23, 2021, to start a due diligence process with a 90 day exclusivity period for signing definitive documents.
In its regulatory filing, Gayatri said that any potential deal will be subject to successful completion of the due diligence process, the ability of the investor to arrange sufficient capital, receipt of approval from investors' investment committee/, multiple statutory/regulatory bodies, agreement on representation & warranties/ indemnities, etc.
Gayatri Projects added, "as per the terms of MOU, if the transaction proceeds towards actual investment, GPL shall use the proceeds from investment primarily for business development, capital expenditure and repayments including reduction and zeroing Debt, working capital requirements of GPL and if so required for such other acts and deeds as the parties mutually agree on time-to-time."
"The company will keep capital markets informed if anything definitive develops in this context," Gayatri Projects added.
The company has been committed to the Balance Sheet strengthening and reduction of long-term debt. As of 31 March 2021, GPL had reduced its long term Debt by 25o/o and had guided towards being long term debt-free over the next 2 years.
On Sensex, Gayatri Projects finished at Rs43.90 per piece up by 4.03%.