JMC Projects (India) has received securities market regulator SEBI’s approval to raise up to Rs.150 crore through a rights issue.
The company had filed its application with the watchdog for the proposed rights issue in September.
SEBI issued its final observations on the draft offer documents on December 22, according to the latest update by the market regulator.
Issuance of ‘observations’ on offer documents by SEBI is considered as a clearance to the issuer to go ahead with the share issue through routes, such as IPO, FPO and rights issue.
In a rights issue, shares are issued to existing investors according to their holding at a pre-determined price and ratio.
According to the draft papers, JMC Projects will issue equity shares to existing shareholders on a rights basis.
Since the beginning of the year, a total of 11 companies have approached SEBI for raising funds through rights issue.
In the same period, 13 firms received the regulator’s nod. Some of these had been pending for one year.
A total of Rs.12,568 crore was garnered through rights issues this year.
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