Penny stock locked in 10% upper circuit ahead of rights issue ex-date; multibagger stock up 120% in one year

Multibagger stocks 2022: This specialty retail sector penny stock jumped ten per cent in Monday's intraday trade ahead of turning ex-rights on Tuesday. On Monday, the multibagger stock was locked in 9.82% upper circuit to Rs 1.79 per share on the BSE. A multibagger stock in its category, despite yielding 22% negative return in the past three months, shares of 7NR Retail clocked 120% return in the last one year as on August 22, 2022.  

The stock will turn ex-rights on Tuesday, August 23. The Board of Directors of 7NR Retail has recently fixed record date for the stock to August 23 and issued rights at Rs 1.4 per share. As per the rights issue announcements, the eligible shareholders will be paid one share for each share held by them on rights basis.  

"The Company has fixed Tuesday, 23rd August, 2022 as the Record Date, for the purpose of ascertaining the eligibility of shareholders entitled for issuance of 1 (One) Fully paid-up Equity Share of the Company having face value of Re. 1/- (Rupee One Only) each for every 1 (One) Equity Share held by the eligible existing equity shareholder in the Company on Rights basis (Rights Issue)," the company said in a regulatory filing on BSE on August 17.  

Incorporated in 21st December, 2012, as a private limited Company under the Companies Act, 1956, the Company mainly deals in the business of trading of apparels in the Wholesale and Retail Segments. 

”Our Company mission is to develop the franchisee in different cities of India focusing more on Tier I and Tier II cities for expansion of Company and to deliver superior quality to value to our customers, shareholders, employees and society at large," says 7NR in its company details.  

What is rights issue? 

A right issued by a company to its shareholders on a pre-determined date is called the record date. Rights entitlements are offered to shareholders as a ratio to the number of securities held on this record date. A shareholder may refuse to subscribe to the rights issue and just let the 'right' lapse. Alternatively, the shareholder can renounce/trade the entitlement in favour of another person for a price.