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Deccan Gold Mines (DGML), the gold exploration company listed on the exchanges, said its rights issue has been subscribed over 1.3 times.
The company had proposed to issue equity shares aggregating to ₹50.33 crore but received subscription for ₹65.22 crore.
The rights issue was opened for subscription on October 14. DGML offered 2.96 crore equity shares for a price of ₹17 an equity share to raise an amount aggregating to ₹50.33 crore from existing shareholders. It closed on October 30. The company is now in the process of finalising the basis of allotment.
Sandeep Lakhwara, MD, DGML, said, “Its success shows the confidence by our shareholders in the company’s long-term strategy. The money raised will help us focus on continued growth in the company through development of projects. There is a lot of talk of gold imports contributing to India’s current account deficit and, therefore, there’s need to develop India’s gold mining industry to reduce our reliance on imports.”
“An added benefit will be that several hundred new jobs will be created in the rural areas,” he added. The company is planning to utilise proceeds from the rights issue for development of its exploration business, which includes Ganajur Gold Project in Karnataka.
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