Gangotri Textiles makes follow-on public issue for Rs 55 cr

New Delhi, Dec 13 (UNI) Gangotri Textiles Ltd today made a follow-on public issue for Rs 55 crore towards a project of setting up six wind electric generators of 1.65 MW each, involving a total outlay of Rs 351 crore.

The issue was in terms of the company's prospectus dated May 29, 2006.

The company has already installed three wind mills and commissioned also and these generators form part of Phase-I of the project, a statement said.

It added that the other three wind mills are to come under Phase-II of the project.

Though the company has commissioned its three wind electric generators in Phase-I, it has been experiencing difficulties in evacuating power generated due to constraints in TNEB as well as the surplus power position prevailing in Tamil Nadu.

In this backdrop, installing further 30 wind electric generators and that too, by resorting to debt at full rates of interest is considered inadvisable.

Accordingly, the company held discussions with its bankers who are lenders for the project and they have agreed for the company dropping these three wind mills in Phase-II and instead, utilising the portion for the Phase-I of the project which will automatically come under TUF scheme.

UNI SRS SBA KN2008