Inchcape is gearing up for an equity raising, according to reports.

The Daily Telegraph cites well-placed sources as revealing that Inchape and its bankers were visiting shareholders, including Blackrock, about the rights issue or placing.

Although the business is within its banking covenants, the company is thought to be keen to reduce its debt pile, which is in excess of £540m, says the newspaper report.

 

Inchcape confirmed in January that it was "evaluating a range of options for its capital structure, including a potential equity issue."

It is not known how much Inchcape is looking to raise from investors.