The company will issue 5.24 crore equity shares of face value Rs. 10 each for cash at Rs. 100 per share (a premium of Rs. 90) for an aggregate amount of up to Rs. 524.52 crore to the existing investors.
The issue will close on May 12, according to the offer document filed by the company with market regulator Securities and Exchange Board of India (Sebi).
In a rights issue, shares are issued to existing investors as per their holding at a pre-determined price and ratio.
In this issue, every shareholder with 100 shares will be eligible to buy 27 shares of the company.
It will use Rs. 8 crore on strategic initiatives, brand building, marketing, partnerships, joint ventures, meeting exigencies or for other purposes as approved by the board.
Axis Capital, CLSA India, SBI Capital Markets and IL&FS Capital Advisors are acting as lead managers to the rights issue. Link Intime India is the registrar to the issue. NSE will be the designated stock exchange for the issue.