SIG, the roofing and insulation specialist, is considering a heavily discounted rights issue to shore up its balance sheet

Reports suggest the company, which is based in Sheffield, is looking to raise as much as £300m. Talks are understood to be at an early stage.

The collapse of the housing market hit SIG hard. Its share price fell from £13 in early 2007 to 96.5p last week. It had net debts of £710m at the end of December.

SIG said that it was “considering a range of options including a potential equity raising”, and that it would make an announcement in due course.

Earlier this month building materials giant Wolseley said it would ask investors for £1bn and rival CRH said it wanted to raise €1.28bn (£1.2bn).