Ahmedabad (Gujarat) [India], November 26: A Rs 49.35-crore rights issue of Ahmedabad-based Shangar Decor Ltd (BSE–540259), a company providing a wide range of decor services, opened for subscription on November 8, 2024. The funds raised through the right issue will be utilised to fund the company's working capital requirements, issue expenses, general corporate purposes, among others. Right issues of the company are offered at a price of Rs. 5.76 per share as compared to the closing share price of Rs. 10.08 per share on November 21, 2024. The rights issue will close on December 6, 2024. The last date for on-market renunciation of rights entitlements is November 29, 2024. Investors can also buy rights entitlements from the market to participate in the company's rights issue.

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Shangar Decor Limited

Issue Opens

Issue Price

Issue Closes

8 November 2024

Rs 5.76 Per Equity Share

6 December 2024

The Company will issue 8,56,82,800 fully paid-up Equity Shares of the face value of Rs. 5 each for cash at a price of Rs. 5.76 per Equity Share aggregating to Rs. 49.35 crore. The Rights entitlement ratio for the proposed issue is fixed at 7:1 (7 Rights equity shares of face value of Rs. 5 each for every 1 fully-paid equity share held by the equity shareholders on the record date – October 28, 2024). The last date for On-market Renunciation of Rights Entitlements is November 29, 2024.

Shareholders are entitled to apply for seven rights equity shares for every fully paid-up equity share held on the record date of October 28. Investors who did not hold shares on the record date can participate in the rights issue by acquiring rights entitlements from the exchange.

The rights issue shares will be credited to shareholders’ demat accounts on December 19, while the listing will take place on the Bombay Stock Exchange (BSE) on December 24.

Highlights:

  • The last date for On-market Renunciation of Rights Entitlements is November 29, 2024. 
  • The company will issue 8.56 crore fully-paid equity shares at an issue price of Rs. 5.76 per share; Rights Issue will close on December 6, 2024.
  • Right Issue funds will be utilised to fund the company's working capital requirements, issue expenses, and for general corporate purposes. 
  • The rights entitlement ratio for the proposed rights issue is 7:1, 7 rights equity shares of Rs. 5 each for every 1 fully-paid up equity shares held by the eligible equity shareholders.

Out of the issue proceeds of Rs. 49.35 crore, the company intends to use Rs. 37.81 crore towards working capital requirement, Rs. 25 lakhs for rights issue expenses and Rs. 11.29 crore towards general corporate purposes. 

Founded in 1995, Shangar Decor Limited excels in providing a wide range of decor services. The company specialises in pre-wedding events, weddings, corporate functions, government functions, thematic décor, infrastructure projects and exhibitions. Renowned for its creativity and meticulous attention to detail, Shangar Decor has established a strong presence in the Indian event industry. The company offers tailored solutions that transform ordinary spaces into unforgettable experiences.

 

 

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