Can Fin Homes’ Rs 276-crore rights issue will open tomorrow and a substantial amount of funds so raised will be utilised towards increasing its capital base.
The issue will close on February 27, according to information available with the capital markets regulator Securities and Exchange Board of India (SEBI).
It will issue over 61.45 lakh equity shares at a price of Rs 450 each to its existing shareholders on rights basis for an aggregate amount of Rs 276.55 crore.
Every investor holding 10 equity shares of Can Fin Homes would be eligible to buy three equity shares of the company.
According to the offer document, Can Fin Homes intends to utilise the net proceeds towards “augmentation of capital base”, which would result in an increase in net worth and enable the company “to meet future capital adequacy requirements”.
Can Fin Homes, promoted by Canara Bank, is primarily engaged in the business of housing finance.
The issue is being managed by SBI Capital Markets.
In December, SEBI had given Can Fin Homes approval to raise up to Rs 300 crore through a rights issue.
In July, the company’s board approved raising money through the same.
In a rights issue, shares are issued to existing investors based on their holdings at a pre-determined price and ratio.