IL&FS Engineering and Construction Company has filed initial papers with market regulator Sebi to raise Rs 300 crore through rights issue.
Issue of equity shares on a rights basis to its existing equity shareholders would aggregate up to Rs 300 crore, draft letter of the offer filed by IL&FS Engineering and Construction with Securities and Exchange Board of India (Sebi) showed.
Under a rights issue, stocks are issued to existing investors of an entity as per their holding at pre-determined price and ratio.
IL&FS Engineering and Construction plans to utilise the funds from the issue towards redemption of preference shares, repayment/pre-payment of certain loans availed by the company and to meet issue expenses.
Edelweiss Financial Services and IL&FS Capital Advisors are the lead managers to the issue. Karvy Computershare would be the registrar to the issue.
As per the draft document, the company has received an "in-principle" approval from the BSE and the NSE for listing the rights issue equity shares.
The company is engaged in the business of providing engineering procurement and construction (EPC) services in India.
It executes projects under various domains such as buildings and structures, roads, railways, irrigation, power, ports as well as oil & gas.