Share India Securities Ltd, a technology-based financial platform, is eyeing to raise Rs 1,000 crore via rights issue and the company has approved the terms for the same.
The rights issue committee of the company approved the terms of rights issue of equity shares with a face value of Rs 10 each along with rights securities to the eligible shareholders of the company was approved as of the given record date, which is fixed as Tuesday, February 28, 2023.
Rights entitlement ratio is fixed at one rights equity share along with 17 detachable warrants per rights equity share for every 50 fully paid-up equity shares held by eligible equity shareholders as on the record date. Issue price per rights equity share is at Rs 700 per equity share of face value of Rs 10 each (including a premium of Rs 690 per equity share).
The issue will open for subscription on March 9, 2023 (Thursday) and will close on March 17, 2023 (Friday). Last date for on market renunciation is set to Monday, March 13, 2023.
An eligible shareholder needs to pay a total amount of Rs 25,200 for every two right shares and 34 warrants, including an initial application of 7,350 for two shares and 25 per cent for 34 warrants. Remaining 75 per cent amounting to Rs 17,850, shall be payable within 18 months from allotment.
The stock has delivered multibagger returns in the last 30 months as the Share India Securities’ shares have soared about 1,050 per cent in the last 30 months. It jumped about 2 per cent to Rs 1208.95 on Monday.
Securities will be credited to the demat account of shareholders on March 31, 2023 and trading in them will commence on Tuesday April 4, 2023, the company said in its exchange filing.
Share India Securities was recently added to MSCI India Domestic Small Cap Index. Share India has expanded its horizon and ventured into NBFC and insurance broking. Its NBFC arm currently has 10 branches and plans to expand its operations. Share India also offers MF distribution and merchant banking services.