The company's board of directors on Thursday approved raising of funds upto Rs 140 crore by issuing 4,85,26,861 equity shares of face value Re.1 per share on preferential basis at a price of Rs.28.85 per share, an official statement said.
Out of Rs 140 crore that will be raised around Rs 40 crore would be infused by the promoter group of the company, the statement added.
The proposed issuance will be governed by the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2011.
The company will now seek its members approval for the said issue. Electrosteel Castings reported a revenue of Rs 1944 crore and EBITDA of Rs 305 Crore during FY 2017-18.