Corporate India Resumes Rights Offering to Fund Expansion

Mukesh Buch
11 Jun, 2014
New York City

Future Retail to raise up to Rs. 2,000 crore to reduce the debt. Indian Hotels received regulatory approvals to raise as much as Rs 1,000 crore through a rights issue. L&T plans to sell 1.6% stake in its financial services unit. SBI to consolidate several subsidiaries.

[R]6:00 PM Mumbai – Future Retail to raise up to Rs. 2,000 crore to reduce the debt. Indian Hotels received regulatory approvals to raise as much as Rs 1,000 crore through a rights issue. L&T plans to sell 1.6% stake in its financial services unit. SBI to consolidate several subsidiaries.[/R]

The Sensex Index slipped 109.80 or 0.4% to close at 25,473.89 The CNX Nifty fell 29.55 to 7,626.85.

Gainers & Losers

DCW Limited rose 0.5% to Rs 21.05 and the company scheduled board meeting on June 18 to decide on preferential share allocation.

Future Retail Ltd plunged 7.2% to Rs 135 and the retailer plans to raise Rs. 2,000 crore through a preferential issue of shares and warrants to reduce the debt.

Future Lifestyle Fashions fell 1.3% to Rs 102.15 after the company agreed to acquire 12% stake in Unico Retail, the maker of fashion accessories.

The Indian Hotels Company Limited increased 0.7% to Rs 100.75 after the company received SEBI approval to raise up to Rs 1,000 crore from rights issue.

Larsen & Toubro Limited slipped 1.2% to Rs 1,715.75 and the company plans to sell as much as 1.6% stake in its financial services unit for about Rs 204 crore.

The company sought shareholder approval to raise as much as Rs 3,600 crore or $600 million through the sale of shares to institutions.

RDB Realty & Infrastructure Ltd jumped 2% to Rs 20.40 after the company secured construction contracts worth Rs.287.52 crore from Rajasthan Avas Vikas & Infrastructure Ltd.

State Bank of India gained 0.9% to Rs 2,690.65 on unconfirmed media reports that the bank intends to merge its three listed and two unlisted associate banks.