This construction engineering company to raise funds worth Rs 806 crore - Details

Salasar Techno Engineering, a homegrown infrastructure company that provides customised steel fabrication and EPC solutions, has informed the exchanges that its board of directors has approved the proposal to raise funds, amounting to Rs 806.4 crore, via preferential allotment of equity shares and warrants. 

The company said that the fund will help it accelerate the business growth further and augment the long-term financial resources of the company.

To raise the funds, Salasar Techno will allot 3.90 crore equity shares to investors belonging to non-promoters on a preferential basis with a face value of Re 1. 

"...by way of creating, issuing and allotting up to 3,90,00,000 Equity Share having face value of Re.1/- each, to the persons belonging to ‘NonPromoter, Public Category’, on preferential basis, at an issue price higher than the floor price determined in accordance with the provision of Chapter V of SEBI ICDR Regulations, payable in cash for aggregating amount of up to Rs. 2,808/- Mn," the company said in an exchange filing.

The company will also issue and allot up to 7.3 crore fully convertible warrants convertible into an equivalent number of fully paid-up equity shares of the company with a face value of Re 1 each.

Earlier on Saturday, the company said that its board has a proposal to merge Hill View Infrabuild Ltd with itself.

On the rationale behind the merger, the proposed amalgamation will simplify and streamline the shareholding structure of the Salasar Techno Engineering, it said.

The proposed scheme of arrangement will also have a beneficial impact on the financial books of the two entities, their shareholders, employees, and other stakeholders, as per the statement.