Jayshree Chemicals to float rights issue

S K Bangur group company Jayshree Chemicals will float a rights issue in the ratio 9:2 to raise funds to part finance the company's expansion project.

A company spokesperson said the issue would be made available to the existing shareholders. Jayshree would issue 2,39,94,374 equity shares at a face value of Rs 10 each and at a premium of Rs five.

The current market price is Rs 34.95 per share.

The spokesperson said the company is in the process of doubling the capacity incorporating state-of-the-art membrane cell technology involving a cost of Rs 150 crore at its existing plant at Ganjam in Orissa.

The project would also be part financed by debt aggregating Rs 90 crore and internal accruals.