Kesoram rights offer to open on Sep 27

BK Birla Group flagship Kesoram Industries on Monday said it will launch a rights issue of over 7.99 crore equity shares on September 27 to raise up to Rs 399.99 crore.

It fixed the rights entitlement ratio of 133 for every 274 equity shares held by eligible shareholders of the company as on the record date.

The issue price is also fixed at Rs 50 per share and the offer will close on October 11. The management is looking to raise up to Rs 400 crore to reduce its high interest-bearing debt burden.

It has set a target to bring down the debt by Rs 450 crore by the end of the fiscal through improved earnings and the rights issue proceeds, and another Rs 350 crore by August next year.