The Securities Exchange Board of India (SEBI) has announced relaxations in the pricing methodology for preferential issues by listed companies having stressed assets and exempt allottees of preferential issues from open offer obligations in such cases, with immediate effect.
These relaxations will help to ease fundraising for companies with stressed assets. To avail the relaxations, the stressed companies would require to comply with certain conditions laid out by the market regulator.
SEBI said eligible listed companies having stressed assets will be able to determine the pricing of their preferential allotments at not less than the average of the weekly high and low of the volume-weighted average prices of the related equity shares during the two weeks preceding the relevant date.
“The framework is aimed at helping stressed companies raise capital through timely financial intervention and protecting the interest of shareholders,” said SEBI in a statement.
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