DMRC to launch Rs7,000 crore rights issue to repay DAMEPL
New DelhiThe Delhi Metro Rail Corporation (DMRC) on Thursday launched a rights issue worth ₹7131
The Delhi Metro Rail Corporation (DMRC) on Thursday launched a rights issue worth ₹7131.28 crore for its equity stakeholders, with funds raised to be utilised to pay an arbritral award of ₹4,500 crore to the Anil Ambani-controlled Delhi Airport Metro Express Private Limited (DAMEPL).
Through a rights issue, a company can raise funds from its existing shareholders by selling them additional shares. In this case, DMRC is offering a total of 7.13 crore new shares, having a face value of ₹1000 each, as per the minutes of the meeting of the DMRC board of directors held on December 13.
The DMRC is a 50:50 joint venture between the Government of India (GOI) and the Delhi government. Through the rights issue, DMRC expects both its stakeholders to infuse ₹3565.64 crore each via their equity contribution. The rights issue is expected to conclude on January 11, 2023.
A DMRC spokesperson refused to comment on the matter but said a decision on this had been taken in the December 13 board meeting.
In October 2012, the DMRC had terminated its contract with DAMEPL to operate the 22.7km Airport Metro Express line, and was under an obligation to pay the latter ₹2782.33 crore along with interest, as ordered by an arbitral tribunal in May 2017.
The Delhi high court and the Supreme Court affirmed the award, but the DMRC is yet to clear the dues. According to DAMPEL, of the admitted amount of ₹7010.08 crore, DMRC has paid only around ₹2599.17 crore.
On Wednesday, the Supreme Court had green lit the execution of the arbitral award and had asked the Delhi high court to “expeditiously” execute the decree passed in favour of DAMEPL, adding the matter should be taken to a logical end, preferably within three months.