Centrum Capital board okays plan to raise Rs 180 bn

Centrum Capital today said its board of directors has approved raising Rs 180 billion by various means.

The company's board of directors today approved the "issue of convertible warrants on preferential basis to BG Advisory Services LLP, being a corporate entity forming part of the promoter group at the company, up to a maximum amount of Rs 3 billion", it said in a regulatory filing.

Centrum will also raise a sum not exceeding Rs 7.5 billion through issue of securities in one or more tranches. The company said it will seek shareholders' approvals for these two proposals through postal ballot process.

Besides, the board has approved "raising of funds up to Rs 7.5 billion by way of offer, issue and allotment of equity shares to the existing shareholders of the company on a rights basis (rights issue), at such price and right entitlement ratio as may be decided by the board in consultation with lead managers," it added.

Centrum is engaged in financial services such as investment banking, wealth management, portfolio management, stock broking, foreign exchange, travel, lending, infrastructure and real estate advisory services.

The company has a pan-India presence with a network of 80 branches.

It has a cumulative experience of deals worth Rs 10 trillion ($162.79 billion) from more than 1,600 billion transactions.

Stock of Centrum Capital closed 3.13 per cent up at Rs 77.50 apiece on BSE today.