Aditya Birla Nuvo to raise Rs 780cr

The board of directors of Aditya Birla Nuvo, which met today, approved a proposal to raise Rs 780 crore via a rights issue.

According to a release issued by the company to the BSE today, the rights ratio and price per share would be decided by the board at a later date.

"The funds raised through the rights issue would be utilised for repayment of existing debt and general corporate purposes. It may be recalled that the company has made substantial investments in Idea Cellular, TransWorks and Birla Sun Life Insurance besides its on-going capital expenditure. The proposed capital issue will strengthen the capital structure of the company," the release added.

Kumar Mangalam Birla, chairman of Aditya Birla Nuvo, said: "Aditya Birla Nuvo stands at the threshold of its next phase of growth. The promoters are fully committed to this offer."