NCC Limited has convened an extraordinary general meeting of its members on May 22 to seek their nod to hike the authorised capital.
The Hyderabad-based construction and infrastructure company will seek the members nod to hike the capital and thereby facilitate the proposed rights issue it is planning.
As per the AGM notice, the authorised share capital of the company is proposed to be increased from Rs 60,00,00,000 (Rs 60 crore) divided into 30,00,00,000 (30 crore) equity shares of Rs 2 each to Rs 1,50,00,00,000 (Rs 150 crore) divided into 75 crore equity shares of Rs 2 each. This will be by way of creation of additional 45 crore equity shares of Rs 2 each.
The company will also pass an enabling resolution for alteration of capital clause in the Memorandum of Association.
Sources in the company said that once this is approved, it will seek necessary permissions from the SEBI to go ahead with the rights issue.
As a part of the company move to bring down its debt and redeploy some of the freed up equity, it is seeking to raise up to Rs 500 crore by offer of shares on rights basis to its existing shareholders.
NCC shares closed flat at Rs 49.90 at BSE.