New Delhi: GP Petroleums Limited (GPPL), a leading manufacturer and marketer of industrial and automotive lubricants under the renowned “IPOL” brand, announced Board approval for a proposed upto ₹130 crores fundraise through issue of non-convertible debentures and optionally convertible debentures. The Company plans to utilize the proceeds to fund the Company’s ongoing business expansion and fulfil its working capital requirements.
The Company will issue upto 300 NCDs aggregating upto ₹30 crores for 36 months and upto 1,000 OCDs aggregating upto ₹100 crores for 18 months, each with a face value of ₹10 lakhs. Both instruments will be issued to RevX Special Credit Opportunities Fund II on a private placement basis. Both instruments will be issued in one or more tranches. The OCD issue is subject to necessary statutory approvals, including shareholders consent through the upcoming postal ballot.
Dilip Vaswani, Non-Executive Director, GP Petroleums Ltd., said, “The proposed financing will provide us with the financial agility to accelerate our growth plans,both organic and inorganic. It also reflects the confidence in our strategic vision to strengthen our marketposition in the hydrocarbon space while giving us the financial foundation towards unlocking long term value for our stakeholders.”
Equity shares arising from conversion of OCD are proposed to be listed on BSE and NSE. The NCDs and OCDs carry a coupon rate of 13% per annum, compounded monthly and paid quarterly. Additionally, the Company will pay 1.5% of additional coupon on deemed date of allotment.
