GP Petroleums Limited (GPPL), the manufacturer and marketer of industrial and automotive lubricants under the IPOL brand, has approved a fundraise of up to Rs. 130 crore through non-convertible debentures (NCDs) and optionally convertible debentures (OCDs).

 

The company said the proposed fundraising will support its ongoing business expansion and meet working capital requirements as it looks to accelerate growth.

 

Under the proposal, GPPL will issue up to 300 NCDs, each with a face value of Rs. 10 lakh, aggregating up to Rs. 30 crore. The NCDs will have a tenure of 36 months.

 

The company will also issue up to 1,000 OCDs, each with a face value of Rs. 10 lakh, aggregating up to Rs. 100 crore, with a tenure of 18 months.

 

Both instruments will be issued to RevX Special Credit Opportunities Fund II through a private placement and may be issued in one or more tranches.

 

The proposed OCD issue is subject to necessary statutory approvals, including shareholders' approval through the company's upcoming postal ballot.

 

Commenting on the announcement, Dilip Vaswani, Non-Executive Director, GP Petroleums Ltd., said, “The proposed financing will provide us with the financial agility to accelerate our growth plans, both organic and inorganic. It also reflects the confidence in our strategic vision to strengthen our market position in the hydrocarbon space while giving us the financial foundation towards unlocking long term value for our stakeholders.”

 

The NCDs and OCDs will carry a 13% annual coupon, compounded monthly and paid quarterly. In addition, the company will pay an additional coupon of 1.5% on the deemed date of allotment.