IL&FS seeks shareholders nod for raising up to Rs 1,000 crore

NEW DELHI: IL&FS Transportation Networks today sought approval of shareholders for raising up to Rs 1,000 crore by issuing preference shares.

The company is raising funds to meet its capex needs and repayment of debt, and also for other needs.

In a notice of postal ballot to its shareholders, the company said in intends to "offer, issue and allot, from time to time, in one or more tranches...non-convertible redeemable preference shares, aggregating to a nominal amount not exceeding Rs 1,000 crore."

The purpose of raising the fund is to augment long-tem finance for funding growth and capital expenditure as also for pre-payment or repayment of debt.

The funds could also be used for funding capital requirements of subsidies or associate companies or joint ventures and for working capital requirements, it said.

"The Board of Directors believe that preference shares would help in optimising capital structure of the company including the debt:equity ratio," it said.