Shares of ​Vascon Engineers rose smartly

Vascon Engineers Ltd., a luxury realty and EPC company, rose smartly for the second day on Thursday after the company successfully closed its Rights Issue aimed at cutting debt and improving cash flows.

Vascon said it raised 100 crore rupees from existing shareholders and the issue was oversubscribed 1.3 times. Promoters chipped in with 60 crore rupees. The main aim of the Rights Issue is to reduce debt by 62 crore rupees to 273 crore rupees, Vascon said.

Additionally, Vascon will be selling non-core assets to the tune of an additional 100 crore rupees to pare down debt to below 200 crore rupees. The remainder will be deployed to improve working capital and cash flows.

Vascon jumped 1.20 rupees, or 5.4 percent, 24.40 rupees on the National Stock Exchange where 12.1 lakh shares were traded compared with the 5-day average of 10 lakh shares.

The company's market capitalisation has fallen 7 percent in the past one year to 367 crore rupees and the stock trades at 0.6 times its book value of 39.2 rupees.

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