Fortune Financial gets Sebi nod to raise Rs 210 crore through rights issue

Markets regulator Sebi has given its go ahead to Fortune Financial Services (India) Ltd to raise Rs 210 crore through rights issue.

With this, the number of firms receiving Sebi's nod since the beginning of the year has reached 11.

In rights issue, shares are issued to existing investors as per their holding at predetermined price and ratio.

The Securities and Exchange Board of India (Sebi) received the draft documents for Fortune Financial Services (India) Ltd's rights issue, through lead manager Vivro Financial Services, in August and issued its 'observations' on November 20.

Issuance of 'observations' on offer documents by Sebi is considered as a clearance to the issuer to go ahead with the share issues through routes like IPO, FPO and rights issue.

As per the draft papers, Fortune Financial Services plans to issue to equity shares with a face value of Rs 10 each "aggregating to an amount not exceeding Rs 210 crore on a rights basis to the existing shareholders of our company".

The funds raised through the issue will be utilised for investment in the company's wholly owned subsidiary Fortune Credit Capital Ltd (FCCL) and to meet general corporate purposes.

The firms that have secured Sebi approval in this year include Hydro S&S Industries, Ashima, Universal Cables, Deccan Gold Mines, Polson, Everlon Synthetics, Zee Media Corporation, State Bank of Travancore Vascon Engineers and Wintac.