Shares in Videocon Industries surged over 10 per cent to a day high of Rs 174.9 on Monday after the company decided to raise $45.21 million through the issue of Global Depository Receipts (GDRs).
GDRs are financial instruments used by companies to raise capital from overseas markets. Typically, they are denominated in either US dollars or euros.
The company said in a filing to BSE that it plans to issue 15.7 million GDRs amounting to $45.21 million. It represents around 15.7 million equity shares at a price of $2.88 per GDR, equivalent to approximately Rs 181.61 per equity share, which is over 14 per cent higher from its closing price of Rs 158.85 on Friday.
The GDR will be issued to LLIC Sarl on a private-placement basis, the company said in a filing to exchanges. The company also wants to list its GDRs on Luxembourg Stock Exchange.
As of 12.20 p.m., shares in Videocon Industries traded 5 per cent higher at Rs 166.90 apiece, outperforming the broader Nifty, which was up 0.1 per cent.