The BK Birla Group company Kesoram Industries Ltd (KIL) on Thursday said that its rights issue was oversubscribed by 26 per cent.

The company’s board in September approved rights issue for ₹400 crore.

The board on Thursday approved the allotment of around 8 crore rights equity shares at ₹50 a share.

₹25 on application

At the time of application, ₹25 a share was paid by the eligible applicants and the remaining ₹25 a share would be payable at the time of first and final call which could be called anytime within six months from the date of allotment of these shares, it said. The company plans to use the proceeds from rights issue to reduce the high cost debt.

The shareholders would be entitled to 133 equity shares for every 274 equity shares held (1:2.06).

The company’s scrip closed at ₹67.25, up by 2.52 per cent on the BSE on Thursday.