Drug firm Zenotech Laboratories has received market regulator Sebi's approval to raise up to Rs 120 crore through an issue of shares to its existing shareholders.
The company had filed draft papers with the Securities and Exchange Board of India (Sebi) in January and got the regulator's 'observation' on April 5.
An 'observation' from Sebi is necessary for any company to launch public offers like rights issue, initial public offer (IPO) and and follow-on public offer (FPO).
According to draft papers, Zenotech Laboratories plans to garner up to Rs 120 crore on rights basis to existing shareholders.
In a rights issue, shares are issued to existing shareholders as per their holding at a pre-determined price and ratio.
Last month, Vardhaman Special Steels had received Sebi's go ahead to raise about Rs 68 crore through this route.
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