 "Rights issue of 2 companies to open tomorrow; aim to raise Rs 454 cr")
The issues will begin on March 28 and close on April 11, as per the information available with capital markets regulator Sebi.
In the rights issue mode, shares are issued to existing investors at a pre-determined price, normally at a discount, in proportion to their holdings.
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Individually, Sun Pharma Advanced Research Company (SPARC) is planning to mop up Rs 250 crore, while Fortune Financial intends to garner Rs 204 crore.
According to draft papers, SPARC will issue 1,02,04,081 equity shares of face value of Re 1 each for cash at a price of Rs 245 per equity share aggregating up to Rs 250 crore to existing shareholders.
The equity shares are being offered on a rights basis to the eligible equity shareholders in the ratio of 5 equity shares for every 116 equity shares held on the record date of March 17.
The proceeds of the issue will be utilised for meeting costs related to pharmaceutical research and development, clinical trials and for other general corporate purposes.
Fortune Financial plans to issue 2,26,77,777 equity shares with a face value of Rs 10 each for cash at a price of Rs 90 each aggregating up to Rs 204.10 crore on a rights basis to the existing shareholders "in the ratio of 4 equity shares for every 5 fully paid-up equity shares held by the existing shareholders on the record date (February 9)."
The funds raised through the issue will be utilised for investment in the company's wholly-owned subsidiary Fortune Credit Capital Ltd (FCCL) and to meet general corporate purposes.
During April-January period of the current fiscal, 11 firms have taken the rights issue route to mobilise Rs 8,785 crore, much higher than the Rs 4,402 crore raised in the year-ago period. The largest rights issue during the period was from Tata Motors that raked-in Rs 7,498 crore.
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