Mukand files papers with Sebi to raise Rs 160 cr via rights

Issue of equity shares on a rights basis to its existing equity shareholders will aggregate up to Rs 160 cr

Steel manufacturer Mukand Ltd has filed initial papers with market regulator Sebi to raise Rs 160 crore through a rights issue.

In rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.

As per the 'Draft Letter of Offer' filed by Mukand with the Securities and Exchange Board of India (Sebi), the issue of equity shares on a rights basis to its existing equity shareholders would "aggregate up to Rs 160 crore".

Mukand said that the proceeds from the issue would be utilised for payment of dues of the banks and financial institutions, working capital requirements and for general corporate purpose.

ICICI Securities is the lead manager to the issue while Karvy Computershare is the registrar for the same.

BSE is the designated stock exchange for the purposes of the issue, the company said.

Mukand is engaged in manufacturing alloy and stainless steel products, among others, in India.

Meanwhile, Uniphos Enterprises has also filed 'letter of offer' with the market regulator to raise Rs 74.92 crore through a issue of 4.40 crore shares on rights basis.

"Issue of 44,071,179 equity shares with a face value of Rs 2 each at a premium of Rs 15 per equity share for an amount aggregating Rs 7,492.10 Lakhs on a rights basis to the existing shareholders of Uniphos Enterprises Ltd," the draft letter of offer said.

The company said it would use "an amount of Rs 7,350 lakhs out of the issue proceeds for the repayment of the outstanding loans".

The issue would open on September 27 and close on October 26, 2013, the draft document showed.

Keynote Corporate Services is acting as the lead manager to the issue and Sharepro Services (I) Private Ltd is the registrar to the issue.

Uniphos Enterprises is engaged in the business of trading of chemicals.