Shares of Ashoka Buildcon rose nearly 2 per cent in early deals on Friday after the road infrastructure company said that its board has approved the allotment of 1,500 un-secured, redeemable, listed, non-convertible debentures, worth Rs 150 crore.
"The committee of the board of directors at its meeting on Thursday, approved the allotment of 1,500 un-secured, redeemable, listed, rated non-convertible debentures of the face value of Rs 10 lakh aggregating Rs 150 crore on a private placement basis," Ashoka Buildcon said in a filing to the Bombay Stock Exchange.
Following the announcement, shares of the company gained as much as 1.60 per cent to touch an intra-day high of Rs 126.40 apiece on the BSE, after opening marginally higher at Rs 124.90, against previous closing price of Rs 124.40.
In a similar trend, stocks of the company were trading at Rs 125.45, up 1.13 per cent, on the National Stock Exchange.
According to data available with BSE, a total of 1,770 shares have changed hand over the counter in early morning trade as compared to two week average of 79,000 shares.
The Coupon Rate, the rate of interest the company offers to pay the debenture holder, is 9.80 per cent per annum, payable annually, the company informed the exchange.
Ashoka Buildcon further said that it will use the proceeds for refinancing of existing debt, capital expenditure, long term working capital and for general corporate purposes.
The company proposes to get the Debentures listed on WDM Segment of BSE Limited in the prescribed time, it added.
Earlier this month, the engineering and construction company had secured letter of acceptance (LoA) from Rail Vikas Nigam Limited, for projects in Bihar and Jharkhand. It had also emerged as lowest bidder for rural electrification works in Jharkhand. "The bid value of the project is Rs 214.21 crore, with a completion period of 18 months."
Meanwhile, the BSE 30-share barometer, Sensex, was trading at 36,149.93, down 342.65 points, or 0.96 per cent, tracking a rally on the Wall Street.
Edited by Chitranjan Kumar