IL&FS Engineering to raise up to $78M through QIP, public issue

IL&FS Engineering and Construction Company today said it will raise Rs 500 crore through various avenues, including Qualified Institutional Placement (QIP) route and rights issue.

Besides, the firm will also issue up to 89 lakh shares of Rs 10 each on a preferential basis to meet its funding requirement.

In a BSE filing, the company said its Board in a meeting today resolved to "issue for an amount up to Rs 500 crore by way of QIP/rights issue/convertible securities, or in any combination, to eligible investors..." 

The timing, mode of issuance, pricing and exact quantum of the securities to be issued shall be decided by the Board of Directors, the filing added.

Reacting to the news, the company's shares rose by over 13 per cent to close at Rs 87.40 apiece on BSE.

Board also revolved to "...issue up to 89 lakh equity shares of Rs 10 each on a preferential basis at a price to be finalised... to Infrastructure Leasing and Financial Services Ltd and/or IL&FS Financial Services Ltd belonging to promoter and promoter group, in view of its requirement of capital to meet ongoing funding requirements." 

The Board of Directors resolved to complete the process during the quarter ending September and authorised Executive Committee of Directors to undertake all steps required in this regard, it added.

The firm operates in infrastructure development, construction and project management space and executes projects in sectors such as buildings and structures, roads, railways, irrigation, power, ports, and oil and gas.

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