Shares of Arunjyoti Bio Ventures Ltd will be in focus when the stock market opens on March 12 (Tuesday).
The Board of Directors of Arunjyoti Bio Ventures has declared a rights issue of equity shares for its eligible shareholders.
The company has set March 12, 2024 as the record date to determine the eligibility of stockholders to receive the rights in the rights issue.
In a stock exchange filing, Arunjyoti Bio Ventures Ltd said the Board of Directors declared the rights issue of “Fully paid Shares of face value of Rs. 10/- each (“Rights Equity Shares”).”
According to the exchange filing, the total number of rights equity shares to be issued is 165,67,200 fully paid equity shares and the issue price has been set at a nominal value of ₹10 each at ₹20 per share (incl ₹10/- as premium per share).
The right subject size is ₹3,313.44 lakhs.
Shares of Arunjyoti Bio Ventures Ltd will trade ex-rights on Tuesday.
Arunjyoti Bio Ventures Ltd shares closed at ₹246.30, up 4.99 percent, on Monday.
What is the right issue of equity shares?
Companies declare rights issues to raise additional funds.
In the rights issue, companies give existing shareholders the right, but not the obligation, to buy new shares at a discount to the current trading price. This type of issue gives existing shareholders securities called rights.
The companies give shareholders an opportunity to increase their exposure to the stock at a bargain price.
In a rights issue, as more shares are issued to the market, the price of the shares is diluted and is likely to go down.
Until the date on which the new shares can be purchased, shareholders can trade the rights on the market just as they would trade ordinary shares.
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Published: 12 Mar 2024, 06:13 IST