Proposed amendments to Companies Act may include easier rights issue norms

Telecom companies Vodafone Idea and Bharti Airtel both raised Rs 25,000 crore through a rights issue earlier this year

Proposed amendments to the Companies Act are said to reportedly facilitate easier norms for fund-raising through the use of rights issues. The move comes even as the use of the route has seen record amounts raised during the financial year.

The total amount of money raised through the route is Rs 52,002 crore. This is the highest since at least 1990-91, shows data from primary market tracker Prime Database. The previous high was reached in 2007-08, when companies had raised Rs 32,519 crore.

A rights issue is when a company looks to raise more money by approaching its own shareholders.