Orient Green Power Company (OGPC) is looking forward for a shareholders’ meeting so as to convince the shareholders to vote for the issue regarding the conversion of INR 50 crore debt of Yes Bank Ltd. into equity shares.
Orient Green Power Company is one of the largest independent Indian developers and operators of renewable energy power plants based on collective installed capacity. As of now, the company’s portfolio flaunts projects in sectors like biogas, wind energy, small hydroelectric and biomass projects at different stages of development
Regarding the conversion of debt into equity shares, a special resolution is expected to be passed so as to approve the conversion of bank loan into equity via the allocation of equity shares of the face value of ten to Yes Bank Limited.
Orient Green Power Company explained in their postal ballot notice that their company made this move after Yes Bank Limited exercised their right. According to their right, the bank has the authority to convert some outstanding credit facilities, whose principal amount doesn’t exceed the sum of INR 50 crore granted by them.
The firm has also asked shareholders for an approval of reappointment of S Venkatachalam as the Managing Director (MD) for an additional term of 3 years (that is from September 23rd, 2016 – September 22nd, 2019). He was first appointed as the Managing Director of Orient Green Power Company on September 23rd, 2013.
Along with this, the shareholders were also asked to approve the Corporate Guarantee, which was issued to Clarion Wind Farm Private Ltd. As per the proposal, the guarantee is for a sum of INR 50 crore in favour of the City Union Bank Limited in support of Clarion Wind Farm. Now, this company is a step-down subsidiary of Bharat Wind Farms Ltd.
The result of the shareholder’s postal ballot or e-voting is likely to be announced on March 28th, 2017. The decision taken by the shareholders will most likely alter the future of the company. The firm is trying its best to get all shareholders on board.
Hindustan Construction Company (HCC) had seen a similar case regarding the conversion of equity shares. The shareholders of HCC had approved the conversion of loan into equity shares or convertible-debentures pursuant to execution of RBI’s structure for the sustainable system of stressed assets.