New Delhi: Indiabulls Ventures has received capital markets regulator Sebi’s (Securities and Exchange Board of India) approval to raise Rs2,000 crore by issuing equity shares to its existing shareholders on rights basis.
The company had filed draft papers with Sebi in September and obtained “observations" from the regulator on 18 January, the latest update with the markets watchdog showed.
Sebi’s observation is very important for any company planning to launch public issue. According to the draft papers, the company plans to raise Rs2,000 crore through rights issue.
The proceeds from the rights issue is to meet the funding requirements and to support future growth of consumer finance and assets reconstruction businesses carried out by the company, through its subsidiary firms.
Earlier, Sebi had kept Indiabulls’ proposed rights issue in abeyance “pending regulatory action for past violations".