“Investors have a period of 18 months from the date of allotment to for the conversion of warrants,” the company said in a filing.
Stock Market News: Multibagger stock Rushil Decor, a leading laminate and MDF panel boards player, on Friday gained after its board announced a fundraising plan. The company made informed about the same through a stock exchange filing. According to the filing, the company is raise Rs 124,74,00,000 through a rights issue.
The company’s board has approved to issue 42 lakh convertible warrants at issue price of Rs 297 to investors from promoter/promoter group and non-promoter shareholders. Each warrant can be converted into one equity share of the company.
Investors applying for the warrants will have to pay 25 per cent at the time of submitting application. The remaining 75 per cent will have to be paid at the conversion of warrants into equity shares.
“Investors have a period of 18 months from the date of allotment to for the conversion of warrants,” the company said in a filing.
Rushil Decor said that it will hold its EGM on November 18 for approval of this preferential issue.
Meanwhile, Rushil Decor shares are trading higher today after the announcement of the fundraising decision through rights issue. Its shares traded at Rs 359.45 in the afternoon session.
A rights issue is a type of corporate event that allows a company’s existing shareholders to purchase extra shares in proportion to their existing holdings at a discount price.
A rights issue is a way for companies to raise additional funds from their existing shareholders. It is also an opportunity for existing shareholders to increase their exposure to the stock at a discount price.