This small-cap Hinduja Group company shares jump 40% in 2 sessions – know triggers here

Amid enormous response to the Rights Issue, Hinduja Group-owned digital company NXTDIGITAL’s shares have jumped almost 19 per cent to touch a day’s high level of Rs 510 per share on the BSE intraday trade on Friday in an otherwise weak market.  

NXTDIGITAL, a media vertical of the global Hinduja Group, shares have zoomed 40 per cent in the last two days as the Rights Issue of the company was subscribed by 1.94 times or 194 per cent. The company has received Rs 560.13 crore against an issue size of Rs 288.61 crore offered. 

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The stock, at around 03:12 pm, has gained around 12 per cent to Rs 481.55 per share on the BSE, as compared to a 1.32 per cent fall in the S&P BSE Sensex.  

NXTDIGITAL is India's premier integrated digital delivery platform with a presence in digital cable, satellite (HITS), broadband, content syndication and teleshopping. 

The company in its press statement said, “The company's rights issue of equity shares of 2 shares for every 5 shares held in the company (aggregating a total of 9.6 million shares) which closed on November 29th, 2021 was subscribed 1.94 times.” 

“The overwhelming response reflects the shareholders' confidence in the company and vindicates the vision charted out by the media group, to continue to transform into an end-to-end digital solutions platform,” It further added.  

According to the management, the company has been taking conscious steps to liquidate non-core assets and pare its debt thereby. "In line with the company's objectives of paring debt, against the sale of land at Hyderabad, the Company has already received 25 per cent of the total consideration of Rs 69.30 crore.”