PVV Infra to Raise Up to ₹49.33 Crore Via Rights Issue 

Vijayawada, December 1: PVV Infra Limited has announced that its board has approved a rights issue. Under the rights issue, the company will raise up to ₹49.33 crore by issuing partly paid-up equity shares. The company announced that the decision was taken in its board meeting that was held today, on December 1. 

PVV Infra Limited (BSE: 536659) is a renewable energy company. It started as a construction and development company in the real estate sector but has changed its business to provide renewable energy services. Now, it manufactures solar cells and executes solar power projects for clients. It was established in 1995, and is headquartered in Vijayawada, Andhra Pradesh. 

What is a Rights Issue? 

A rights issue is a corporate action which allows listed companies to raise additional funds from their current shareholders. A rights issue gives a company’s current and eligible shareholders the right to buy the extra shares issued by the company. Generally, companies issue additional shares at a lower price than the market price of its shares. Most companies launch a rights issue to have additional funds to repay existing debt, improve cash flow, or for expanding the business. 

PVV Infra Rights Issue Details 

As per the company’s announcement, its board has approved a right issue, where the company will raise up to ₹49.33 crore by issuing new shares of the company. However, it is yet to announce additional details about the rights issue, such as the record date, payment details, rights issue ratio, etc. It announced that the partly paid up equity shares, which it will issue in its rights issue, will have a face value of ₹5 each, and will not exceed ₹49.33 crore. 

Shares Rise 0.80% to ₹5.03 

As of 3:22 PM, PVV Infra share price was up by 0.80%, or 0.04 points and was trading at ₹5.03. Until now, the shares have traded within a range of ₹5.03 and ₹4.90. The traded volume for the PVV Infra stock stood at 21.12 lakh shares, with the company’s market cap at ₹57 crore. The shares have their 52-week high at ₹5.46 and their 52-week low at ₹2.03. 

Recent Solar Contracts Win 

The rights issue announcement comes after the company recently announced that it has secured two solar power orders worth ₹799 crore in Uttar Pradesh. The company’s subsidiary signed a 25-year Power Purchase Agreement with the Uttar Pradesh New and Renewable Energy Development Agency. The project is for a 100 MW solar project and will be spread across Bagphat and Moradabad. The project is valued at ₹384 crore. 

On the other hand, the company’s another subsidiary, PVV Housing also received a new EPC order for a 109 MV solar project in UP. The value of the project is ₹415 crore. 

Furthermore, the company’s board of directors have also approved a new plan for expanding the company’s business. It will invest in its subsidiaries to increase its market presence in power development and EPC operations. For now, investors will be waiting for the company to announce further details about its rights issue. 

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