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IL&FS Engineering and Construction Company has withdrawn its proposed rights issue application, through which it was looking to raise up to Rs 300 crore.
The company had filed its draft papers with the Securities and Exchange Board of India (SEBI) in March this year.
However, the company through its lead merchant banker Edelweiss Financial Services Ltd withdrew its offer documents on December 4 this year, as per the latest update available with SEBI.
The company was planning to raise up to Rs 300 crore by issuing equity shares on a rights basis to its existing shareholders.
Under a rights issue, stocks are issued to existing investors of an entity as per their holding at a pre-determined price and ratio.
IL&FS Engineering and Construction was planning to utilise the funds from the issue towards redemption of preference shares, repayment/pre-payment of certain loans availed by the company and to meet issue expenses.
As per the draft document, the company had already received an “in-principle” approval from the BSE and the NSE for listing the rights issue.
The company is engaged in the business of providing engineering procurement and construction (EPC) services in India.
It executes projects under various domains such as buildings and structures, roads, railways, irrigation, power, ports as well as oil & gas.
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