Indian wine giant Indage Vintners plans to raise INR2bn via a share rights issue.

Indage, previously known as Champagne Indage, said today (10 June) that its board has approved in principle a plan to raise INR2bn ($42m) via a rights issue.

The money will be raised through the "issue of equity shares and convertible equity share warrants and/or optionally convertible debentures on preferential basis to the identified investors", Indage said.

Last week, Indage said that it planned to raise "long-term/medium-term financial resources". It has not released details on what the extra finance will be used for.

The move comes only days after Indage denied Indian press reports that it is seeking an outside investor.

Commenting on the speculation, the company said: "The promoter family has not engaged any investment banker for any mandate to seek investment by Asahi Breweries, Ravi Jain or Pernod Ricard or any other such 'suitors'."