Busines

VA Tech gets ₹120 crore

The board of VA Tech Wabag Ltd. has approved a proposal for capital infusion of ₹120 crore received from marquee and high networth investors to meet its growth plans and new business opportunities.

At the board meeting on Tuesday, the directors considered the letter of consent and gave their approval for fresh issue of 75 lakh equity shares of ₹160 per share. The said proposal is subject to shareholders approval at the ensuing Annual General Meeting to be held on September 23. On July 31, 2020, the board had informed the exchanges that it had approved a proposal to raise up to ₹400 crore. The firm has now scaled down its enabling resolution to ₹280 crore.

According to the regulatory filing, Rekha Rakesh Jhunjhunwala has agreed to infuse ₹80 crore, followed by Basera Home Finance Pvt. Ltd. ₹24 crore and Sushma Anand Jain and Anand Jaikumar Jain (jointly) of ₹16 crore.

"This is the first time the company has proposed to raise equity capital since its IPO in 2010 and we believe that this well timed equity infusion will provide the necessary growth capital for the company to scale greater heights," said Rajiv Mittal, MD & group chief executive officer, VA Tech Wabag.

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