Vascon Engineers Ltd on 30 November announced that its Board of Directors have considered and approved raising funds up to Rs 125 crore through qualified institutional placement (QIP). The news of the fund raising came after trading hours.

In its regulatory filing, the company said, “The board has inter-alia approved raising of funds by way of issuance of such number of equity shares having face value of ₹10 each, for an aggregate amount not exceeding ₹125 crores or an equivalent amount thereof by way of qualified institutions placement (QIP) or other permissible mode in accordance with the applicable laws, subject to the receipt of necessary approvals.”

The board of the company has also approved the constitution of a committee for all matters related to fundraising through QIP.

The shares of QIP are not sold open to the public; only qualified institutional buyers can apply for these shares. Moreover, QIP makes it easier to raise money as it requires fewer filings and approval.