This Article is From Sep 16, 2014

NCC's Rs 600 Crore Rights Issue to Open on September 29

NCC's Rs 600 Crore Rights Issue to Open on September 29

New Delhi: The Rs 600 crore rights issue of infrastructure firm NCC Ltd will open on September 29 and close on October 17.

According to NCC's offer document filed with market regulator Securities and Exchange Board of India (Sebi), the company will issue 29.93 crore equity shares of face value of Rs 2 each at Rs 20 per share aggregating to Rs 598.70 crore on rights basis.

The ratio of allotment would be 7:6 (seven shares on rights basis for every six shares held). The issue would be offered at Rs 20 per share (including a share premium of Rs 18 per share).

In a rights issue, shares are issued to existing investors as per their holding at a pre-determined price and ratio.

NCC had sought approval from Sebi in July to raise funds through the rights issue.

The Hyderabad-based firm would use the proceeds from the issue towards repayment/pre-payment of certain loans availed by it and for general corporate purposes.

NCC is involved in development of infrastructure in various fields such as building and housing, water and environment, transportation and irrigation

ICICI Securities and SBI Capital Markets are lead managers to the issue.