IL&FS Engineering gets board nod for rights issue

Issue will be priced at a 7.5% discount to closing price of the share to NSE on October 9

IL&FS Engineering and Construction Company today said its board has approved raising up to Rs 300 crore through a rights issue.

 

"The Board of Directors of the company... Has approved the issue of equity shares of face value of Rs 10 each to the existing equity shareholders on rights basis (Rights Issue), up to Rs 300 crore at a price of 7.5% less than the closing price of the share to NSE on October 9," IL&FS Engineering and Construction Company said in a statement.

 

The terms and conditions of the issue like rights entitlement ratio and record date will be decided in consultation with the lead manager to the Rights Issue, it added.

 

The issue would be priced at a 7.5% discount to closing price of the stock yesterday, the company said.

 

"The board has resolved to convene extra-ordinary general meeting of shareholders of the company on November 11 to approve inter-alia increase of authorised capital in order to facilitate the Rights Issue," it said.

 

The shares of the company were trading at Rs 37.60 apiece on BSE in the afternoon trade, up 9.94% from the previous close.