Gammon India to invest up to Rs 675 crore in Gammon Power Ltd

NEW DELHI: Construction and engineering major Gammon India today said it will make a further investment of up to Rs 675 crore in its subsidiary Gammon Power Ltd (GPL).

"The Board of Directors...has approved further investment in its wholly-owned subsidiary Gammon Power by subscribing up to 2.25 crore equity shares of Rs 10 each at a price of Rs 300 per equity share (including a premium of Rs 290 per equity share) aggregating up to Rs 675 crore to be issued by GPL on conversion of loan due and outstanding from GPL to the company," Gammon India said in a BSE filing.

Earlier, Gammon India had said its board will this week consider a proposal for investment in the company's engineering procurement and construction business.

Shares of Gammon India were trading 0.40 per cent down, at Rs 12.41 apiece on the BSE.