Light commercial vehicle manufacturer Swaraj Maz-da is proposing to raise about Rs 80 crore

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by way of a rights issue to part-fund the ongoing expansion programme and to repay the debt.

The company is implementing a Rs 260 crore capacity expansion programme, over two phases, at its manufacturing complex in Punjab.

The company intends to issue 3,984,946 equity shares at an issue price of Rs 200 for cash at a premium of Rs 190 per share, aggregating to Rs 7,969.89 lakh.

The equity shares are being offered on a rights basis to the equity shareholders in the ratio of 19 equity shares for every 50 equity shares held on February 10, according to a rights issue document filed with the Securities and Exchange Board of India (Sebi).

Swaraj Mazda will utilise Rs 18 crore of the net proceeds of the issue towards financing its ongoing expansion at the Nawanshahar manufacturing unit in Punjab, Rs 50 crore of the proceeds towards repayment of a loan taken from Allahabad Bank in connection with the expansion project and the rest for general corporate purposes.

The company has proposed to fund the project cost of Rs 260 crore through Rs 80 crore of equity and Rs 180 crore of debt.