GMR Infrastructure has received the Securities and Exchange Board of India approval to raise up to Rs 1,500 crore through rights issue.

In a rights issue, shares are issued to existing investors as per their holding at a pre-determined price and ratio.

The company had filed its application with SEBI for the proposed rights issue in September.

SEBI had issued its final observations on the draft offer documents on November 17, according to the latest update by the capital markets regulator.

Issuance of ‘observations’ on offer documents by SEBI is considered as a clearance to the issuer to go ahead through routes like IPOs, FPOs and rights issue.

The funds raised from the issue would be utilised towards repayment of certain borrowings availed by GMR Infrastructure, investment in its subsidiary — GMR Energy Ltd — as well as for general corporate purposes.

JM Financial Institutional Securities, Axis Capital, ICICI Securities and SBI Capital Markets are the lead managers to the issue.

As per the draft letter filed by the firm, the company would issue equity shares for an aggregate amount “not exceeding Rs 1,500 crore on a rights basis” to its shareholders.

GMR Infrastructure has interest in sectors such as airports, roads, power plants and urban infrastructure.