Industry

3 firms seek SEBI nod for rights issue

more-in

As many as three firms, including State Bank of Travancore and Zee Media Corp, approached market regulator Securities and Exchange Board of India (SEBI) in January to raise nearly Rs.700 crore through rights issue.

Apart from these two firms, Everlon Synthetics has also filed draft papers with SEBI to mop up funds by issuing equity shares to existing shareholders.

Most of the companies plan to garner funds for repayment of loans and to support working capital requirements.

SBT to raise Rs. 485 cr.

Individually, State Bank of Travancore plans to garner up to Rs.485 crore through rights issue, Zee Media Corp (Rs.200 crore) and Everlon Synthetics (Rs.3.5 crore).

According to Prime Database, “as of now, the early part of 2015 is likely to see little action on the rights front.”

Fund mobilisation

In 2014, fund mobilisation through rights issues stood at Rs.5,224 crore, higher than Rs.4,101 crore garnered in the preceding year.

By number, the year witnessed 18 companies using the rights route as compared to 12 firms in 2013, according to Prime Database.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jan 24, 2020 9:31:55 AM | https://www.thehindu.com/business/Industry/3-firms-seek-sebi-nod-for-rights-issue/article6824195.ece

Next Story