Aditya Birla Nuvo to raise Rs 780 cr via rights issue to repay debts

Mumbai, Sept 11 (UNI) The board of Aditya Birla Nuvo Ltd has decided to raise funds not exceeding Rs 780 crore through the issue of equity shares on a rights basis to repay its debt and for general corporate purposes.

Announcing this, the Company's release to BSE said the decision on the rights issue was made at the Board meeting on September 11, while the share ratio and price per share for the rights issue would be decided by it at a later date, subject to necessary approvals.

It may be noted that the Aditya Birla Group company has made substantial investments in Idea Cellular, TransWorks and Birla Sun Life Insurance besides its ongoing capital expenditure. The proposed capital issue will strengthen the capital structure of the company.

Commenting, its Chairman Kumar Mangalam Birla said, ''Aditya Birla Nuvo stands at the threshold of its next phase of growth. The promoters are fully committed to this offer.'' In this context, Mr Sanjeev Aga, Managing Director, of the company said ''The proposed rights offering will improve the gearing on the Balance Sheet, besides providing another opportunity to the existing shareholders to participate in the company.'' Enam Financial Consultants and DSP Merrill Lynch have been appointed as managers to the proposed issue and Amarchand&Mangaldas&Suresh A Shroff&Co as legal advisors to the company.

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