Capital markets watchdog Sebi has given clearance to Crest Ventures, non-banking financial company, for raising funds through rights issue.
In a rights issue, shares are issued to existing investors in line with their holding at pre-determined price and ratio.
The company had filed its application with the capital markets regulator for the proposed rights issue in March through its lead merchant banker Inga Capital and Sebi issued its final 'observations' on the draft offer documents on May 11, as per the latest update by Sebi.
Issuance of 'observations' on offer documents by Sebi (Securities and Exchange Board of India) is considered as a clearance to the issuer to go ahead with the share issues through routes such as initial public offering, follow-on public offer and rights issue.
As per the draft papers, Crest Ventures will raise funds by way of issue of equity shares to the existing shareholders of the company on a rights basis up to Rs 45 crore.
The proceeds of the issue will be utilised towards investment in Kara Ventures, an associate company of Crest Ventures, lending purposes and for other general corporate plans.
