VA Tech Wabag gets board approval to raise Rs200 crore; stock slips ~2%

25 Nov 2022 , 02:26 PM

VA Tech Wabag Limited informed that the board of directors of the company discussed the various options for optimizing the quantum and cost of debt of the Company including low-cost and long-term options in their meeting held on November 25, 2022.

After deliberations, the Board considered and approved the proposal for fundraising through the issue of Non-Convertible Debentures (NCD) up to Rs200 crore in one or more tranches/series to Asian Development Bank (ADB) on a private placement basis, as permitted under applicable laws, subject to the necessary approvals, permissions, consents, and sanctions, said the company in an exchange filing.

The Board also expressed its gratitude to the management for its ongoing efforts toward debt reduction and stated that this NCD proposal will help to further that goal.

Furthermore, the Board has approved the immediate appointment of Integrated Registry Management Services Private Limited as the Registrar and Transfer Agent (RTA) for the issuance/allotment of the aforementioned NCD to the ADB.

At around 2.29 PM, Va Tech Wabag was trading at Rs306.65 down by 1.71% from its previous closing of Rs312 on the BSE. The scrip touched intraday high and low of Rs316.50 and Rs306 respectively.

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