BackAshok Leyland to raise 635 crore via QIP
With a floor price of Rs34.30 for up to 185.2 million equity shares, the issue opened for subscription on Thursday
PremiumAshok Leyland’s shares closed at Rs37.90, down 0.52%. The Sensex dropped 25,062.67, down 0.99%. Photo: Hemant Mishra/Mint
Mumbai: Ashok Leyland Ltd, India’s second largest commercial vehicle maker, will be raising Rs635 crore through a qualified institutional placement (QIP) the company said in a filing to the BSE.
The fund-raising was approved by company’s board on 10 May 2013 and approved by the shareholders on 26 June. With a floor price of Rs34.30 for up to 185.2 million equity shares, the issue opened for subscription on Thursday.
At the end of 31 March, Ashok Leyland had a debt of Rs6,756 crore. The issue would dilute promoter’s equity to 34.56% from 41.52%.
The announcement by the debt ridden company comes a day after Anil Ambani-controlled Reliance Communications Ltd (RCom) on Wednesday raised Rs6,100 crore by selling shares to institutions and warrants to promoters.
Ashok Leyland joins the growing list of companies that have scrambled to raise money after a new government, which took over in May, promised to revive the economy. The companies need the money to prepare for growth and, in most cases, reduce the debt on their books.
Ashok Leyland’s shares closed at Rs37.90, down 0.52%. The Sensex dropped 25,062.67, down 0.99%.
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