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Radhe Developers (India) Ltd has withdrawn its proposed rights issue after a board review carried out this week. The company did not provide specific reasons for the withdrawal, but rights issues usually require wider shareholder participation and longer timelines. In place of this, the board has cleared a preferential issue of shares valued at up to 64.1 million INR. This move gives the company a more focused way to raise capital from selected investors. Radhe Developers has taken similar funding decisions in previous years as part of its capital planning.
Radhe Developers (India) Ltd confirmed that its board has withdrawn the planned rights issue following a review this week. The company did not share further details on the factors that led to the decision. Rights issues generally involve inviting existing shareholders to purchase additional shares, which often depends on prevailing market sentiment and investor willingness to participate. Advertisement
In the same meeting, the board approved a preferential issue of shares worth up to 64.1 million INR. A preferential allotment allows the company to bring in capital from chosen investors on predetermined terms, offering a more direct fundraising approach. This method is often used when companies want quicker access to funds or wish to engage specific investors.
Radhe Developers has taken various capital-related decisions in past periods, including changes in its funding structure to support ongoing requirements. The latest approval continues that pattern and shows a shift in near-term capital-raising preference, with the company opting for a route that can be executed with fewer procedural steps than a rights issue.
Source Reuters
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