New Delhi: GMR Infrastructure has received market regulator Sebi's approval to raise up to Rs.1,500 crore through rights issue.
In a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.
The company had filed its application with the Securities and Exchange Board of India (Sebi) for the proposed rights issue in September.
Sebi issued its final observations on the draft offer documents on 17 November, according to the latest update by the capital markets regulator.
Issuance of “observations” on offer documents by Sebi is considered as a clearance to the issuer to go ahead with the share issues through routes like initial public offering, follow-on public offer and rights issue. The funds raised from the issue would be utilized towards repayment of certain borrowings availed by GMR Infrastructure, investment in its subsidiary—GMR Energy Ltd—as well as for general corporate purposes.
JM Financial Institutional Securities Pvt. Ltd, Axis Capital Ltd, ICICI Securities Ltd and SBI Capital Markets Ltd are the lead managers to the issue. As per draft letter filed by the firm, the company would issue equity shares for an aggregate amount “not exceeding Rs.1,500 crore on a rights basis” to its shareholders. GMR Infrastructure has interest in sectors such as airports, roads, power plants and urban infrastructure.
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