BackFour companies file papers with Sebi to raise about Rs700 crore
The four companies are Mahindra Lifespace Developers, Vardhaman Special Steels, Intellect Design Arena and ZenoTech Laboratories
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New Delhi: As many as four companies, including Mahindra Lifespace Developers, have approached capital markets regulator Securities Exchange Board of India (Sebi) to raise nearly Rs700 crore through rights issue.
Other three firms are Vardhaman Special Steels, Intellect Design Arena and ZenoTech Laboratories.
These four companies filed draft documents with the Securities Exchange Board of India (Sebi) in January and February this year to mop up a total of ₹ 682 crore through rights issue.
Individually, Mahindra Lifespace Developers plans to garner up to ₹ 300 crore by way of issue of equity shares to the existing shareholders, followed by Intellect Design Arena (up to ₹ 200 crore), ZenoTech Laboratories (up to ₹ 120 crore) and Vardhaman Special Steels (about ₹ 62 crore).
Besides, rights issue of private lender South Indian Bank and state-owned Canara Bank are currently underway. In rights issue, shares are issued to existing shareholders as per their holding at a pre-determined price and ratio.
According to market experts, market stability could be the one reason why companies are opting for an equity issuance to existing shareholders. Last year, companies mopped a total of ₹ 1,230 crore through rights issue mode.
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