Sebi clears rights issue of 2 cos; total reaches 10 in 2015

Markets regulator Sebi has given its go-ahead to rights issue proposed by two companies -- Hydro S&S Industries Ltd and Ashima Ltd -- to raise a total of Rs 180 crore for repayment of loans.
With this, the number of firms receiving Sebi's green signal since the beginning of the year has reached 10.
In rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.
The Securities and Exchange Board of India (Sebi) received the draft documents for Hydro S&S Industries rights issue, through lead manager Keynote Corporate Services, on May 22 and issued its 'observations' on August 5.

Further, Sebi received draft papers for Ashima Ltd's rights issue on June 23 via merchant banker Keynote Corporate Services and issued its observations on August 3.
Issuance of 'observations' on offer documents by Sebi is considered as a clearance to the issuer to go ahead with the share issues through routes like IPO, FPO and rights issue.

As per the draft papers, Ashima plans to issue over 8 crore equity shares for an amount aggregating to Rs 80.08 crore on a rights basis to the firm's existing shareholders.
Hydro S&S Industries plans to issue equity shares for "an amount aggregating up to Rs 100 crore" on a rights basis to its shareholders.

These firms will use the fund for repayment of loans and expansion of business.
The 10 firms that have secured Sebi approval include Universal Cables, Deccan Gold Mines, Polson, Everlon Synthetics, Zee Media Corporation, State Bank of Travancore Vascon Engineers and Wintac.