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Rights issues worth Rs 5,500 crore cleared

Market regulator Securities and Exchange Board of India (SEBI) has given its go-ahead to four rights issues, totalling about Rs 5,500 crore, proposed by TV 18 Broadcast, Network 18 Media & Investment, Bajaj Finserv and Bhushan Steel.

The rights issues of Network 18 and TV 18 would together raise funds worth about Rs 4,000 crore, while Bajaj Finserv and Bhushan Steel have offered to raise up to Rs 1,000 crore and Rs 474 crore, respectively.

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

Out of these four issues, Bajaj Finserv had filed draft offer document with the SEBI last month itself, while other three companies had submitted their documents to the regulator earlier this year. SEBI received the draft offer document for Bhushan Steel rights issue, through lead manager ICICI Securities, February 22 and issued its ‘observations’ on August 22. 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 IPOs, FPOs and rights issue. Further, SEBI received draft offer documents for Bajaj Finserv rights issue on July 18 and issued its observations on August 17. the rights issue.
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