The company had planned the 1:1 rights issue at a premium of Rs 25 per share for sometime in the middle of the current fiscal but has decided to delay it indefinitely, sources close to Videocon Appliances said. The objective of the issue was to finance the company's ongoing capital expenditure programme and augment long term working capital resources. It also required the funds to retire some high cost debt, the sources added.

Videocon Appliances has received Sebi's clearance for a rights issue of 331.75 lakh equity shares of Rs 10 each (for cash at a premium of Rs 25 per share) with detachable and tradeable warrants in the ratio of one equity share for every one share held aggregating Rs 116.11 crore toshareholders. The warrant holder were entitled to apply for two equity shares of Rs 10 each at a price of Rs 35 per share within 12 months from the date of allotment of the equity shares of the rights issue. The issue was to be lead managed by KJMC Financial Services. The estimated cost of Videocon Appliances' capital expenditure is about Rs 81 crore. The firm has estimated Rs 32.97 crore as funds for long term working capital needs and another Rs 2.05 crore as estimates for issue expenses. The Videocon Appliances scrip on Thursday fell on the BSE to Rs 16.40 per share.