The company has also sought approval of shareholders to re-classify its authorised share capital. BILT is reported to be saddled with an estimated consolidated debt of over Rs 6,000 crore.
BILT will issue equity shares that will constitute 51 per cent of its fully paid equity share capital, upon conversion of debt into equity under SDR scheme, the company said in a regulatory filing today.
This will be subject to approval of shareholders, it added.
The company said it will re-classify share capital into 150 crore equity shares of face value Rs 2 each and 1 crore preference shares of face value of Rs 100 each, constituting Rs 400 crore.
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Earlier this year, the company had said it is in advanced talks with banks for various options, including infusion of private equity funding, for itself and its subsidiaries.
The company has been witnessing worsening liquidity situation and had curbed operations due to inadequate working capital.
Fitch ratings had in January downgraded the long-term issuer default ratings BILT citing worsening liquidity situation and curbing of operations.
The rating agency had downgraded BILT and placed it on Ratings Watch Negative (RWN) on July 29, 2016, based on its deteriorating credit profile and significant refinancing risks for upcoming debt maturities.