Jan 3: Ducon Infratechnologies Ltd, a Mumbai-based technology provider, on Tuesday said that Aron Govil, its promoter, is voluntarily planning to pledge his 5 million equity shares to raise capital for the company.
“The company foresees emerging opportunities in the industry in terms of significant upcoming projects and hence believes that this decision will strengthen company’s balance sheet position and enable it to capitalize on the upcoming opportunity,” it said.
The company also informed that the raised capital would be channeled into the company thus enabling it to bid for many upcoming FGD projects in India.
Commenting on the development, Aron Govil, Chairman of the company, said, “given the capital intensive nature and long gestation of projects, the business would need capital to ensure our eligibility in the projects we bid for. With this fund raise, we will generate capital at the lowest possible cost and that can be used for funding our expansion and growth. We firmly believe that the decision would ensure that the company will not lose any opportunities in sight and further reinforce our positioning as we continue to grow our business.”
Ducon shares closed trading at Rs 44.40, up 6.09% from the previous closing of Rs 41.85, on BSE on Wednesday.