Comments
IL&FS Transportation Networks today sought approval of shareholders for raising up to Rs 1,000 crore by issuing preference shares.
The company is raising funds to meet its capex needs and repayment of debt, and also for other needs.
In a notice of postal ballot to its shareholders, the company said in intends to “offer, issue and allot, from time to time, in one or more tranches...non-convertible redeemable preference shares, aggregating to a nominal amount not exceeding Rs 1,000 crore.”
The purpose of raising the fund is to augment long term finance for funding growth and capital expenditure as also for pre-payment or repayment of debt.
The funds could also be used for funding capital requirements of subsidies or associate companies or joint ventures and for working capital requirements, it said.
“The Board of Directors believe that preference shares would help in optimising capital structure of the company including the debt-equity ratio,” it said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.