Share India Securities trades ex-date for Rights Issue: Check amount, subscription date and ratio
Share India Securities Rights issue: Share India Securities on Tuesday hit fresh 52-week low as shares of the financial services company traded ex-date for Rights Issue.
Share India Securities Rights issue: Share India Securities on Tuesday hit a fresh 52-week low as shares of the financial services company traded ex-date for Rights Issue. The stock traded in red as it adjusted ex-rights in a volatile market to hit a 52-week low of Rs 990.60 apiece on NSE, falling nearly 6 per cent, around 9:45. It quoted Rs 1014 around 12:20 PM.
The company has plans to raise up to Rs 804 crore through the Rights Issue. It has fixed February 28 as the record date to determine the eligibility of shareholders. Anyone having the shares of the company in their Demat account on the record date will be eligible for the Rights entitlement.
Rights Issue is a corporate action wherein a company issues shares to existing shareholders in proportion to their holding at a special price.
According to an exchange filing, the issue will open on March 9 and will be available for subscription till March 13.
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The company has fixed the issue price per Rights share at Rs 700 of face value of Rs 10 each. The rights entitlement ratio is fixed as 1 rights equity share along with 17 detachable warrants for every 50 fully paid-up equity shares.
The company will issue a total of up to 6,38,131 rights equity shares bearing a face value of Rs 10 each along with up to 1,08,48,227 detachable warrants.
The filing said that the last date for the credit of right entitlements is March 3 while March 13 is the last date for renunciation. The shares will be credited into Demat accounts of the eligible shareholders on March 31 and trading in the securities will begin from April 4.
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Meanwhile, the company was recently added to MSCI India Domestic Small Cap Index. Share India has expanded its horizon and ventured into NBFC and insurance broking.
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