Vardhman Special Steels has received the approval of Securities and Exchange Board of India (Sebi) to raise Rs 68 crore through rights issue.
In a rights issue, shares are issued to existing shareholders as per their holding at a pre-determined price and ratio.
The company had filed draft papers with Sebi in February to raise funds through rights issue and the regulator issued its observation on March 28, which is necessary for any firm to launch public offer, as per latest update with Sebi.
Going by the draft papers, Vardhman issue "comprises 1,35,70,000 equity shares of face value of Rs 10 each for cash at a price of Rs 50 per rights equity share including a premium of Rs 40 per rights equity share aggregating up to Rs 67.85 lakh".
Proceeds of the issue would be utilised towards working capital requirements, repayment of external commercial borrowing and other general corporate purposes.
Master Capital Services Limited is the sole book running lead manager for the offer.
Last month, realty firm Mahindra Lifespace Developers had received Sebi's approval to raise up to Rs 300 crore through rights issue.
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