NCC Limited has announced that the rights issue of equity shares aggregating to Rs 598.70 crore has been oversubscribed.

In a statement to the BSE, AAV Ranga Raju, Managing Director of NCC Limited, the Hyderabad-based construction and infrastructure company, said the company received good response from the shareholders and the issue has been oversubscribed.

The issue had closed for subscription on October 17. As per preliminary estimates by the Registrars to the Issue Karvy Computershare, the issue has been oversubscribed by about 1.14 times.

As per the objects of the issue, significant portion of the funds raised through the rights issue will be utilised for reducing the short term debt availed by the company.

The statement further mentioned that the basis of allotment will be finalised in consultation with the Stock Exchanges and the allotment is expected to take place by the end of October and the funds are likely to be available to the company immediately thereafter.

The company is in the process of reducing its debt and freeing up equity for redeployment into new projects. As a part of the process, it has also placed some of its completed assets, including road projects for stake sale.

NCC shares closed the day at Rs 43.05, up 0.35 per cent at BSE.

comment COMMENT NOW