JP Associates sought shareholder approvals
Jaiprakash Associates has sought shareholders’ approval to give up to Rs 40,000 crore in guarantees against debt to joint ventures or associate firms.
The new limit will be higher by Rs 5,000 crore. It is proposed to take a general approval of shareholders of the company to give any loan/guarantee or to provide security in connection with a loan to acquire (by way of subscription, purchase or otherwise) the securities of any subsidiary/joint venture/associate company of the company or to any person to the extent of maximum of Rs 40,000 crore as against the present limit of Rs 35,000 crore as the company said in a notice to shareholders ahead of the annual general meeting.
Jaiprakash Associates has business interest in areas like real estate, cement and hospitality among others. The company is looking forth to benefit the shareholders. The decision was taken to seek the shareholder’s approval in order to give up the debt to the joint ventures.
The decision was taken by the authorities in a meeting that was organised among them. This decision was being planned since some time.
Source: Mint
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