Sadbhav Engg to raise Rs 125 cr via rights issue

Infrastructure firm Sadbhav Engineering today surged nearly 10 per cent on the NSE after the company said it will raise Rs 125 crore by issuing equity shares or warrants on a rights basis.

The board of directors has approved the proposal "to raise funds not exceeding Rs 125 crore by way of issue of equity shares or warrants or a combination thereof or any other securities to the existing shareholders of the company on a rights basis", Sadbhav Engg said in a filing to the NSE.

"The ratio, price and other terms of the proposed right issue would be decided at a later date," the firm said.

Further, the board has also approved the proposal to increase the authorised capital of the company. However, the filing did not disclose any detail in this regard.

The decision of the board is subject to the approval of the company's shareholders, it added.

Shares of Sadbhav Engineering were trading at Rs 322, up 9.69 per cent in the afternoon trade on the National Stock Exchange.