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SRF board approves fund raising plans of up to Rs 1,000 crore

PTI     August 31, 2020

Chemicals firm SRF on Monday said its board has approved plans to raise up to Rs 1,000 crore through a combination of issuance of equity shares and non convertible debentures (NCDs). In a regulatory filing, SRF Ltd said its board has approved raising of funds "for an aggregate amount not exceeding Rs 750 crore through issue of equity shares by way of qualified institutions placement, in accordance with the relevant provisions of applicable law and subject to approval of the company's shareholders and receipt of applicable regulatory approvals".

The company's board also approved raising "an aggregate amount not exceeding Rs 250 crore through issue of listed redeemable secured non-convertible debentures by way of private placement". The company, however, did not elaborate on end use of funds. Last month, SRF Ltd had said its board okayed setting up an additional chloromethane facility at Dahej in Gujarat at a cost of Rs 315 crore.

The company had said its existing capacity of chloromethane, which is at 95,000 tonnes per annum, is fully utilised. The proposal is to add an extra 1,00,000 tonnes per annum capacity by January 2022. The Rs 315 crore investment required for the project will be raised through a mix of debt and internal accruals for the project, it had said. Shares of SRF Ltd were trading 4.41 per cent lower at Rs 4,036.50 apiece on the BSE.

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