The Board of water treatment player VA Tech WABAG Ltd today approved the proposal to raise funds through non-convertible debentures of up to Rs 300 crore.
The city-based company, in a filing to Bombay Stock Exchange, said, the decision to raise funds was to support the future growth opportunities and any funding required for working capital needs.
"...the Board of Directors has approved the proposal for raising of funds through issuance of secured/unsecured redeemable Non-Convertible Debentures (NCDs)by way of private placements for upto Rs 300 crore as and when required through one or more tranches," the company said in the filing.
It was also decided to seek an enabling resolution from the shareholders at the annual general meeting scheduled in August, it said.
The company said the board had earlier approved the fund raising proposal through issuance of securities by way of "public/private placements including qualified institutional placements (QIPs) for up to Rs 400 crore and was not availed of till now."
The fresh proposal to raise funds through issuance of NCDs will be within the already approved borrowing limits of the company, it said.
Shares of the company were trading at Rs 378 apiece up by 1.18 per cent over previous close in BSE.
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