Refex Industries' Board Approves Raising Up To Rs 928 Crore Via Preferential Issue

The board of Refex Industries Ltd. has approved the proposal to raise up to Rs 928 crore by issuing preferential equity shares.

The company will issue up to 86.55 lakh equity shares with a face value of Rs 2 each to the "non-promoter" category on a preferential basis for an aggregate amount of up to Rs 405.05 crore, according to an exchange filing on Thursday.

The fundraising via preferential issue is subject to approval by shareholders at the extraordinary general meeting that will be held on Oct. 26.

The company will issue up to 111.7 lakh warrants to "promoter" and "non-promoter" categories on a preferential basis for an aggregate amount of up to Rs 522.76 crore, according to the filing. The board has approved to fix the issue price at Rs 468 for each equity share or warrant.

Additionally, the board has approved the appointment of CARE Ratings Ltd. as the monitoring agency to monitor the use of proceeds from the preferential issue.

Shares of Refex Industries closed 0.32% lower at Rs 541.90 apiece, compared to a 2.12% decline in the benchmark NSE Nifty 50.

It has risen 322.64% in the last 12 months and 348.39% on a year-to-date basis. The total traded volume so far in the day stood at 1.88 times its 30-day average. The relative strength index was at 68.87.