Friday, April 25, 2014: Private sector lender Lakshmi Vilas Bank and infrastructure major IL&FS Engineering and Construction Company are among the four firms who earlier filed for approval the company’s Draft Letter of Offer (LOO) for the proposed Rights issue of the companies with Securities and Exchange Board of India (SEBI) and are now awaiting approval for the same. Mirc Electronics, which sells the Onida brand of TVs and drug firm Neuland Laboratories are the other two companies also awaiting approval. The companies in total are planning to garner up to Rs 8,630 million through the rights issue.
To breakdown individual stakes, Lakshmi Vilas Bank is eyeing to raise up to Rs 5,050 million, while IL&FS Engineering and Construction Company plans to raise almost Rs 3000 million through the process. Meanwhile, Mirc Electronics and Neuland Laboratories are eyeing to garner Rs 330 million and Rs 250 million respectively.
Earlier, SEBI had approved the rights issue of Mukand, Wheels India, Easun Reyrolle and Denis Chem Lab, with another company, Polson Ltd withdrawing their rights issue in January. However, Prime Database claims that there’s going to be no likely action on the rights front in 2014.
The rights issue is proposed to meet the capital expenditure required for expansion of offshore development centers, to meet the additional working capital requirements, to invest in existing subsidiaries, to invest in acquiring companies in specific domains to strengthen and expand solution offering to customers and to meet the expenses of the present issue.
