Jet Freight Logistics' Rights Issue closes today, company plans to raise Rs 37.7 crores

Jet Freight Logistics' Rights Issue will close today, January 31. The company is planning to raise Rs 37.7 crores through the issues. The rights entitlement ratio is 1:1.

Rights Issue is a corporate action. The company offers shares at a special price to its existing shareholders in proportion to their holding of old shares. Jet Freight Logistics' Rights Issue received 55 per cent subscription as on January 27. The Rights Issue is available at Rs. 16.25 per share -- 12 per cent discount to a closing price of Rs 18.50 on January 27. The Rights issue of the company was opened on January 20.

The company said that it will use the proceeds to fund the company's expansion plans, including purchasing a warehouse, meeting working capital requirements, entering new geographies and for general corporate purposes.

The company plans to issue 2,32,01,892 fully paid-up equity shares of face value Rs 5 each at an issue price of Rs 16.25 per equity share (including a premium of Rs. 11.25 per Equity Share) aggregating to Rs. 37.70 crores. The Rights entitlement ratio for the proposed issue is fixed at 1:1 (1 fully paid-up equity share for every 1 fully paid-up equity share held by the equity shareholders). 

Post the rights issue, the total outstanding shares of the company should increase to 4,64,03,784 equity shares from 2,32,01,892 equity shares prior to the rights issue.

Richard Theknath, Chairman and MD, Jet Freight, said, "The company has taken many important strategic initiatives, including – Mission Excel in the recent past with a focus to expand capacities, adding more channel partners aiming at exponential growth. Our business initiatives are built upon the 4 Ps -- Product expansion, People & Culture, Process automation and Promotion of business."

"Proceeds of the issue will further strengthen the company's balance sheet and help fund its expansion plans and strategic growth initiatives," he added. Jet Freight Logistics, established in 1986, is a technology-driven freight forwarding company with a specialisation in perishable cargo.