Delhi Metro Rail to launch rights issue to raise Rs7,131.28 crore
India Infoline News Service |
16 Dec, 2022 |
Delhi Metro Rail Corporation (DMRC) on Thursday launched a rights issue to raise Rs7,131.28 crore from its two promoters, the Delhi government and the Centre.
Funds raised would be used to pay the dues of Anil Ambani-backed Delhi Airport Metro Express Private Limited (DAMEPL).
In this case, DMRC is offering a total of 7.13 crore new shares, having a face value of Rs1000 each, as per the minutes of the meeting of the DMRC board of directors held on December 13.
The DMRC is a 50:50 joint venture between the Government of India and the Delhi government. Through the rights issue, DMRC expects both its stakeholders to infuse Rs3565.64 crore each via their equity contribution. The rights issue is expected to conclude next year on January 11, 2023.
According to the reports, a DMRC spokesperson refused to comment on the matter but said the decision had been taken in the December 13 board meeting.
In October 2012, the DMRC had terminated its contract with DAMEPL to operate the 22.7km Airport Metro Express line and was under an obligation to pay the latter Rs2782.33 crore along with interest, as ordered by an arbitral tribunal in May 2017.
The Delhi high court and the Supreme Court affirmed the award, but the DMRC is yet to clear the dues. According to DAMPEL, of the admitted amount of Rs7010.08 crore, DMRC has paid only around Rs2599.17 crore.
On Wednesday, the Supreme Court had green lit the execution of the arbitral award and had asked the Delhi high court to â€œexpeditiouslyâ€ execute the decree passed in favor of DAMEPL, adding the matter should be taken to a logical end, preferably within three months.
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