The company said the proposed issuance of equity shares to Qualified Institutional Buyers (QIBs) may be undertaken in one or more tranches in accordance with applicable laws and regulations.
The approved fund-raising limit represents an increase from the company’s earlier approved limit of ₹1,000 crore to ₹2,000 crore.
Diamond Power Infra said the QIP is intended to help the company achieve compliance with Minimum Public Shareholding (MPS) requirements mandated under the Securities Contracts (Regulation) Rules, 1957 and SEBI’s listing regulations.
The board noted that the company is currently non-compliant with the MPS requirements under Rule 19(2)(b) and Rule 19A of the Securities Contracts (Regulation) Rules, 1957, read with Regulation 38 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations.
The company said that, in line with a SEBI circular, a QIP is one of the permissible methods for achieving compliance with MPS norms.
It added that it intends to achieve full compliance with the MPS requirements at the earliest.
The proposed issuance will comprise equity shares and will be subject to shareholder approval under the relevant provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The board also approved a postal ballot notice to seek shareholder approval for the proposed issuance of equity shares and related actions.
Further, the company constituted a Corporate Social Responsibility Committee and reconstituted its Risk Management Committee and Management Committee of Directors.
Shares of Diamond Power Infrastructure closed at ₹202.39, down 1.04% on June 18.
