The money will ber used to bid for, and take on, larger contracts as well as to support investment in innovation and technology, the company said.
It will also be used to fund likely increased working capital requirements arising from market moves towards target cost, cost reimbursable contracts.
The plan is to raise £25.0m through a firm placing and £50.1m through a placing and open offer.
For the year ended 31 December 2013, Costain’s revenue increased 2.7% to £960.0m (2012: £934.5m).
Operating profit rose 12% to £27.4m (2012: £24.5m), attributed to a focus on higher margin projects.
Pre-tax profits were virtually halved to £12.9m (2012: £24.7m) due to one-off costs of the failed bid for May Gurney (which cost £3.7m) and £9.8m written off on a Spanish land development.
The forward order book stood at £3.0bn at year-end.
Costain’s Infrastructure division saw revenues grow 13% to £560.6m (2012: £494.9m) and adjusted operating profit rose by more than 30% to £31.4m (2012: £23.5m).
The Natural Resources division that was established in November 2012, encompassing water, oil & gas, nuclear process and waste work, saw revenues shrink 9% to £397.6m (2012: £437.7m).
Adjusted operating profit, excluding one-off sales of interests in associates and joint ventures, was cut to £3.7m (2012: £9.0m).
Chairman David Allvey said: “Costain has been transformed and is now one of the UK’s leading tier one engineering solutions providers. The Group is established in a developing market of a limited number of providers who can deliver the innovative integrated consulting, project delivery and operations and maintenance services increasingly demanded by major customers.
“The proposed £75m fully underwritten capital raise, announced today in conjunction with another strong performance in 2013, provides us with the opportunity to accelerate our growth in the medium and long-term in rapidly evolving markets in which it is expected that over £400 billion will be spent in the next 10 years.”
Chief executive Andrew Wyllie said: " Today's proposed capital raising will enable us to accelerate the rate at which we address these opportunities, and will thereby enhance the Group's medium and long term growth prospects, by demonstrating the Group's financial capacity to support a greater number of longer, larger contracts, investing in innovation and technology, financing bid costs for projects, funding increased working capital requirements and, where opportunities arise, adding further expertise by acquisition."
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