Usha Martin said Tuesday the board of directors has approved to raise funds through a rights issue of equity shares. The company plans to raise Rs 2 billion, subject to all applicable statutory and regulatory approvals.

The terms and conditions of the rights issue including the rights entitlement ratio, the issue price, issue size, record date, timing of the rights issue and other related matters shall be decided by the board or a duly empowered committee thereof, the company said.

Shares of the company declined Rs 2.25, or 5.97%, to settle at Rs 35.45. The total volume of shares traded was 331,748 at the BSE (Tuesday).