Hitachi Energy India To Conduct Postal Ballot To Raise Rs 4,200 Crore

Hitachi Energy India Ltd. on Monday said that it will conduct a postal ballot for approval to raise a total of Rs 4,200 crore via various options.

According to the exchange filing, the company will conduct the vote to seek approval from its members on a special resolution, which be part of the notice.

In the voting that will start at 9 a.m. on Jan. 22 and continue till 5 p.m. on Feb. 20, Hitachi Energy will seek shareholders' approval to raise the funds through issues of equity shares or other securities.

Earlier, in an exchange filing last week on Saturday, the energy solutions provider had intimtated via stock exchanges that it may conduct a fundraise via public issue, rights issue, or preferential allotment, private placement, including qualified institutional placement.

The company may raise Rs 4,200 crore in one or more tranches or any other mode or combination thereof as may be permitted under applicable laws and with the required regulatory or statutory approvals. However, it had added that this will be subject to approval by Hitachi Energy's shareholders.

The company will send the ballot notice only those shareholders, who were listed in the company’s register of members or list of beneficial owners as of Jan. 17, 2025, the disclosure added.

The funds from the proposed issuance will be used towards meeting growth objectives, the filing said.

The company pointed that it has been pursuing both organic and inorganic growth opportunities.

It also noted that there is an ongoing requirement for working capital and capital expenditure for the upgrade and expansion of businesses and ongoing projects.

According to the company, as it is on an expansion mode it may come across additional growth opportunities.

These opportunities may present as organic and inorganic options, which may include mergers and acquisition. The company will need to take such initiatives that will improve its market share, so that it can accelerate its business growth.

To support this growth and expansion, the company will need to secure adequate resources, including funds, which will be allocated as necessary over time, the company’s filing added.

The proceeds of the fundraise may go towards repayment or pre-payment, in full or in part, of certain borrowings, present or future.

The company said that the fundraise "will help reduce our indebtedness and guarantee obligations, leading to a reduction in debtservicing costs and an improvement in the debt-equity ratio and credit ratings".

Shares of Hitachi Energy India Ltd. closed 0.23% lower at Rs 12,881.10 apiece on the BSE, compared to a 0.59% advance in the benchmark Sensex.

(With PTI inputs)