However, some analysts have been openly scathing of the raising which has come only two weeks after CSR's half-year earnings briefings at which no mention of the capital management strategy was made.

Deutsche Bank analyst Emily Behncke released her report this morning and said she was disappointed regarding the capital raising.

"We believe in two weeks it is unlikely this issue appeared for the first time and are surprised management did not foreshadow (or indeed announce) its funding plan at this time," Ms Behncke said.

"Despite our disappointment regarding the capital raising, we believe CSR represents good value, particularly at the $1.40/share issue price."

UBS and ABN Amro are busy conducting the placement and non-renounceable entitlement to institutional and retail shareholders today, with an update of subscription levels expected to be known this afternoon.

Company insiders said a number of current investors had registered their interest in increasing their stake in CSR at the discounted price while new shareholders were also tipped to join the register.

CSR, which operates a building materials business, an aluminium smelter and a sugar milling division, released details Monday of its capital raising.

The capital raising comprises a $125 million institutional placement and a non-renounceable 1-for-4 pro rata entitlement offer to share-holders of up to $357 million. About $304 million will be underwritten.

The company will offer new equity to investors at $1.40 a share - a 22pc discount to the closing price last week.

"We strongly believe in the market positions of our divisions and (the) initiatives represent a prudent, proactive step to strengthen CSR's overall position during this period of uncertainty," said CSR managing director Jerry Maycock.

Mr Maycock said the capital raising would reduce CSR's debt from $1.342 billion to between $868 million and $1.047 billion, depending on the response of shareholders.

Deutsche Bank's Ms Behncke has assumed a 50pc take up of the retail rights issue, implying total equity raised of roughly $394 million.