Vascon Engineers' Rs 100 crore rights issue gets Sebi nod

NEW DELHI: Vascon Engineers has received capital market regulator Sebi's approval to raise up to Rs 100 crore through a rights issue.

The company had filed application with the Securities and Exchange Board of India in November.

Sebi issued its final 'observations' on the draft offer documents on February 3, which is considered as a clearance to the issuer to go ahead with the issue, according to the latest update by the market regulator.

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

As per the draft letter filed with Sebi, the company plans to issue "rights equity share not exceeding an amount of Rs 1,000 million by the company to the eligible equity shareholders of the company...".

Vascon Engineers plans to use the proceeds of the issue for repayment of loan, to finance the construction of ongoing projects and for general corporate purposes.

The company is active in multiple sectors including residential, industrial, IT parks, malls and multiplexes, hospitality and community.

The issue is being managed by IDFC Securities and IDBI Capital Market Services.