The Delhi Metro Rail Corporation (DMRC) has launched a Rights issue of Rs 7131.28 crores for its equity stakeholders, i.e. Government of India (GOI) and Delhi Government. In the Rights issue, the DMRC is offering 7.13 crore shares with a face value of Rs 1000 each.
The Rights issue opened on Thursday and will close on January 11, 2023.
The DMRC, which is a 50:50 joint venture of the GOI and Delhi Government, has requested both stakeholders to infuse Rs 3565.64 crores each by way of their equity contribution. Under the Rights issue, a company issues new equity shares to the existing shareholders to raise fresh funds.
DMRC will use the proceeds from the rights issue to satisfy the Arbitral Award in favour of Delhi Airport Metro Express Pvt. Ltd. (DAMEPL).
The Rights issue was approved by the Board of Directors of DMRC in a meeting held on 13 December.
The DMRC decided to launch the Rights issue after it ailed to get any response from the GOI and Delhi Government on its request to share the total arbitration award as CAPEX expenditure.
The Supreme Court had upheld an Arbitration Award of Rs 7,000 crores in favour of DAMEPL on 9 September 2021. Earlier, DMRC tried to raise loans from banks for the payment of award money to DAMEPL.
Later on it dropped the idea and informed the Delhi High Court that if the company raised debt from the banks, it will fall into a debt trap as it cannot service the debt through its revenue.