Chennai-based project engineering company Shriram EPC Limited (SEPC), a part of the Rs 50,000-crore Shriram Group, is planning to raise anywhere between Rs 100 crore and Rs 200 crore through a rights issue.
T Shivaraman, managing director and chief executive officer of SEPC, said that the proposal (rights issue) will be considered at the company’s board meeting, which was scheduled to held by the end of this month.
“We are yet to decide the quantum ... it might be in the range of Rs 100 crore to Rs 200 crore,” he said, adding that the fund-raising was aimed at bringing down the publicly-listed company’s debt of around Rs 1,400 crore.
Commenting on the time frame for the proposed rights issue, Shivaraman said that the company will approach the Securities and Exchange Board of India (Sebi) once it obtained its board’s approval, and that the company was hopeful of coming out with the issue before September.
According to him, the company’s business visibility remains comfortable and it is focussed on the profitable execution of it’s order book.
“The company’s diversified business model has helped us to carry a fairly strong order book, which on Tuesday stands at Rs 3,194 crore, even in a challenging environment for project expenditures,” he said.