Punj Lloyd Gets Shareholders Nod for Term Loan Up to Rs1,500 Crore

New Delhi: Infrastructure major Punj Lloyd has received shareholders' approval for taking term loans up to Rs 1,500 crore with the condition that the lenders can get the debt converted into equity shares in case of a default.

"The consent of the company be and is accorded to the board in respect with the financial assistance to be availed from various banks and financial institutions (lenders) from time to time in the nature of term-loan assistance...aggregate to a sum not exceeding Rs 1,500 crore (facility), such that in the event of default...

"Some of the lenders at their option may be able to convert their outstanding facility to equity shares in the company," Punj Lloyd said in a BSE filing on Wednesday.

The shareholders' nod was given to the company in an extraordinary general meeting of the members held earlier.

The company said each such financial assistance to be availed from various banks and financial institutions would be separate and distinct from the other.

As per the minutes of the meeting it was resolved that, "on receipt of notice of conversion, the board be and hereby is authorised to do all such acts, deeds and things as the board may think necessary and shall allot and issue requisite number of fully paid up equity shares in the company to such lenders."

The filing said the equity shares allotted to such lenders shall "rank pari passu in all respects with the then existing equity shares in the company and be listed on the stock exchanges where the existing shares of the company are listed."

Those present in the AGM included chairman Atul Punj, managing director and Group CEO J P Chalasani, director finance P N Krishnan and group president legal and company secretary Dinesh Thairani.

Punj Lloyd Group is a global conglomerate offering engineering, procurement and construction (EPC) services.

The shares of the company closed at Rs 24.75 on BSE, up 1.23 per cent from its previous close.