Jewellery retailer Senco Gold on Friday said its board of directors has approved to raise upto ₹500 crore by way of Qualified Institutional Placement (QIP) and split of one equity share into two.
In a stock exchange filing, the Kolkata-based company said the board of directors at their meeting considered and approved the raising of funds by way of issuance of equity shares, and/ or securities convertible into equity shares at the option of the company for an aggregate amount not exceeding ₹500 crore by way of QIP or such other permitted means under applicable law in one or more tranches. The company is planning to launch the QIP by the end of the current financial year.
The board also approved splitting of one equity share, having face value of ₹10 each, into two equity shares having face value of ₹5 each by alteration of the capital clause in the Memorandum of Association of the company along with Articles of Association, in accordance with the applicable laws.
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The company plans for the 1:2 share split to improve the liquidity of the equity shares in the capital markets through widening the shareholder base and to make it more affordable for retail investors.
The company, in the stock exchange filing, said it expects to complete the process within 3 months from the date of approval of the members of the company, subject regulatory and statutory approvals.
Senco Gold’s scrip ended the day at ₹1404.45 apiece on BSE, down 0.68 per cent from the previous close.