Pune: Vascon Engineers Ltd, (BSE & NSE: VASCONEQ), a leading company in realty, EPC and Clean Room Partitioning, announced today that it has recently raised INR 100 crores through a rights issue.
The rights issue was subscribed by over 130%.
The promoters of the company infused INR 60 crores through this issue, thereby, increasing the promoter shareholdings to 48.02%.
INR 62 crores, from the money raised, is being used to repay debt. This brings down the debt level of the company from approx INR 335 crores to INR 273 crores.
The remaining INR 38 crores is being used mainly to drive mainly residential projects, namely Windermere in Koregaon Park and Ela near Magarpatta city.
In its EPC business, Vascon has a strong or order book of approx INR 1000 crores, most of which is to be executed in the next 24 months. These projects are located in various cities including Pune, Mumbai, Chennai and Lucknow.
Vascon Engineers is one of the rare companies that have the construction capabilities to execute not only their own real estate projects but also third-party contracts.
Apart from the INR 100 crores raised, Vascon will raise another INR 100 crores through the sale of its non-core assets like hotels etc. The proceeds from these sales will be used to further reduce debt to sub INR 200 crores levels. This will also help in improvement of cash flows and performance.
Vascon will also enter the affordable housing market with projects at Katvi, Off. Talegaon MIDC, Old Mumbai-Pune Road soon. The company will use the design and build strategy in these projects that will enhance efficiency in time and reduce the cost of construction.
Vascon also announced that the topline of its subsidiary GMP Tech Solutions has reached almost INR 250 crores. GMP Tech Solutions specializes in manufacturing of fire doors, aluminum doors, clean room partitions, aluminum sections etc. Vascon took over GMP in the year 2010, when the turnover was 125cr.
Said Mr. R Vasudevan, MD, Vascon Engineers Limited, “With the infusion of capital and the re-focus on our core business, we are back on the growth track. Our GMP business has been growing exceptionally well and we are extremely proud of the team.”
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