IL&FS Engineering gets board nod for rights issue

IL&FS Engineering and Construction Company's board has approved raising up to Rs 300 crore through a rights issue.

The issue would be priced at a 7.5 per cent discount to closing price of the stock on Wednesday, the company said.

"The Board of Directors of the company... has approved the issue of equity shares of face value of Rs 10 each to the existing equity shareholders on rights basis (Rights Issue), up to Rs 300 crore at a price of 7.5 per cent less than the closing price of the share to NSE on October 9," IL&FS Engineering and Construction Company said in a statement.

The terms and conditions of the issue, like rights entitlement ratio and record date, will be decided in consultation with the lead manager to the issue, it added.

"The board has resolved to convene extra-ordinary general meeting of shareholders of the company on November 11 to approve inter-alia increase of authorised capital in order to facilitate the Rights Issue," the statement said.

Shares of the company were trading at Rs 37.60 apiece on the Bombay Stock Exchange in afternoon trade, up 9.94 per cent from the previous close.