Vascon Engineers gains on fund raising plans

It decided to raise Rs 200 crore via rights issue and sale of non-core assets to reduce its debt burden

Shares of Vascon Engineers are trading higher by 2% after the company decided to raise Rs 200 crore via rights issue and sale of non-core assets to reduce its debt burden and meet working capital requirements. CLICK FOR FULL REPORT

"The company will raise Rs 100 crore through rights issue and another Rs 100 crore through sale of non-core assets. Also, it will utilise all the proceeds for repaying the debt and bring it down to less than Rs 200 crore," Vascon Engineers Managing Director R Vasudevan said in a filing to the BSE.

“With the infusion of capital and the re-focus on our core business, the company will be back on the growth track. Vascon is exiting the IT park in Nashik and will also sell our stake in Holiday Inn at Hinjewadi, Galaxy Hotel in Goa and Hyatt on Nagar Road in Pune. Around 60 per cent of the sale of non-core assets had already been done, while the term sheets of half of what remained were done, and the rest will be done next year," he added.

The stock opened at Rs 24 and touched a high of Rs 24.40 on the BSE. At 9:50AM over 254,398 shares changed hands on the BSE.