DMRC announces rights issue worth Rs 7,131.28 cr

New Delhi: The Delhi Metro Rail Corporation (DMRC) has announced a rights issue worth Rs 7,131.28 crores for both of its equity shareholders, which includes the centre and the state government. The funds raised will be used for payment towards arbitral award of 2017 in favour of Delhi Airport Metro Express Private Ltd (DAMEPL). The DMRC is a 50:50 joint venture between the central government and the Delhi government.

SC directed Delhi High Court to proceed with execution of Rs 4,600 cr award granted to DAMEPL

The Supreme Court on Wednesday directed the Delhi High Court to proceed with the execution of the Rs 4,600 crore arbitration award granted in favour of DAMEPL, which had pulled out from running the Airport Express metro line over safety issues and take it to a logical end within three months.

An arbitral tribunal had ruled in favour of Reliance Infra's DAMEPL and accepted its claim that running the operations on the line was not viable due to structural defects in the viaduct through which the train would pass.

BoD of DMRC held meeting to request MoHUA & GNCTD to subscribe to its equity share

The Board of Directors of the DMRC held a meeting on December 13. The sole agenda was to "consider seeking approval of the Board to request both the stakeholders of Delhi Metro Rail Corporation Ltd, i.e. Union Ministry of Housing and Urban Affairs (MoHUA) and Government of National Capital Territory of Delhi (GNCTD) to subscribe to the equity share capital of the DMRC Ltd. to meet the liability arising out of Arbitral Award dated May 11, 2017, in favour of Delhi Airport Metro Express Private Ltd," the DMRC has said in its affidavit in the court.

The Board "approved the sole agenda of raising equity share capital as stated aforesaid, and as per the resolution passed by the Board, the subscription of the
issue is slated to be opened for subscription on December 15 and would close on January 11, 2023," it added.

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Gol and GNCTD are requested to infuse funds worth Rs 3,565.64 crore each

In order to make the due payment to DAMEPL, there is an urgent need to infuse funds by raising equity share capital to the tune of Rs 7131.28 crore. "Therefore, both the stakeholders i.e., Gol and GNCTD are requested to infuse funds by way of equal equity contribution to the tune of Rs 3,565.64 crore each", said the agenda notes for the board meeting.

"The Board discussed the matter and approved raising the paid-up equity share capital of the Company by way of right issue, to be subscribed equally by both the stakeholders i.e., Gol and GNCTD," according to the minutes of the meeting, attached in the affidavit.

The consent of the Board is hereby "accorded to offer and issue 3,56,56,400 equity shares of Rs 1,000 each for cash at par i.e., Rs 1,000 per share aggregating to Rs 3,565.64 crore each to both the stakeholders i.e., Gol and GNCTD on rights basis," it said. These amount to 7,13,12,800 equity shares of Rs 1,000 each. This offer carries the right of renunciation, wholly or in part, according to information shared in the affidavit.

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