Reliance Defence and Engineering Ltd (RDEL) today said it will raise up to Rs 1,200 crore through rights issue to augment long-term resources and exit from corporate debt restructuring (CDR).
"RDEL, formerly known as Pipavav Defence and Offshore Engineering Company intends to augment long-term resources by making a rights issue of equity shares aggregating up to Rs 1,200 crore," the company said in a BSE filing.
Reliance Defence Board of Directors in a meeting today approved the rights issue.
"The issue shall be subject to applicable approvals. The price, entitlement ratio and the record date for the rights issue will be decided in due course in consultation with the advisors and bankers to the issue," the filing added.
The proceeds of the issue would enable RDEL to exit from the CDR and strengthen its financial position.
"Further, the resources would equip RDEL to undertake strategic business from the Ministry of Defence in line with the 'Make in India' programme of Prime Minister Narendra Modi.
The shares of the company closed 1.04 per cent up at Rs 68.05 apiece on BSE.
