Gayatri Projects Limited (GPL or the Company) had been exploring funding options to manage its tight liquidity situation arising from cash flow mismatch. Accordingly, the company has been approached by an overseas investor for exploring fund infusion options in the company.
As part of preliminary discussions, the company has signed a MoU with the said investor on July 23, 2021 to start a due diligence process with a 90 day exclusivity period for signing definitive documents. Any potential deal will be subject to successful completion of due diligence process, ability of the investor to arrange sufficient capital, receipt of approval from investors' investment committee, multiple statutory / regulatory bodies, agreement on representation & warranties / indemnities, etc.
As per the terms of MOU, if the transaction proceeds towards actual investment, GPL shall use the proceeds from investment primarily for business development, capital expenditure and repayments including reduction and zeroing Debt, working capital requirements of GPL and if so required for such other acts and deeds as the parties mutually agree time-to-time.
GPL has been committed towards Balance Sheet strengthening and reduction of long-term debt. As of 31 March 2021, GPL had reduced it long term Debt by 25% and had guided towards being long term debt free over the next 2 years.
Shares of GAYATRI PROJECTS LTD. was last trading in BSE at Rs. 42.2 as compared to the previous close of Rs. 42.6. The total number of shares traded during the day was 592056 in over 3017 trades.
The stock hit an intraday high of Rs. 43.8 and intraday low of 41. The net turnover during the day was Rs. 25205598.