Hatsun Agro Products board approves Rights Issue of ₹400 cr
Premium- The issue will be available for existing shareholders. The eligible shareholders will be determined on the record date which the company will announce in due course.
Private sector dairy company, Hatsun Agro Products on Monday received board of directors approval for 'Rights Issue' aggregating to ₹400 crore. The issue will be available for existing shareholders. The eligible shareholders will be determined on the record date which the company will announce in due course. Hatsun shares closed flat on BSE today.
In a meeting held on September 19, the company's board of directors approved fundraising through the issue of equity shares by way of 'Rights Issue' to the existing shareholders on a record date for an amount not exceeding ₹400 crore.
The issue is subject to relevant approvals from the regulatory authorities.
In its regulatory filing, the company said, "the board also approved the formation of a Committee of Directors for the said Rights Issue and authorized it to decide the terms and conditions of the Rights Issue including, the rights entitlement ratio, the issue price, timing of the issue, record date and all other matters related and incidental to the Rights Issue in consultation with the lead manager to the Rights Issue."
On BSE, Hatsun shares closed at ₹1,081.80 apiece flat compared to the previous closing of ₹1,082.45 apiece. Earlier today, the shares touched an intraday high of ₹1,092 apiece and a low of ₹1,065 apiece respectively.
The company's market valuation is around ₹23,319.64 crore at the current closing price.
Hatsun has been committed to providing a range of high-quality dairy products to customers. The company manufactures and markets products that cater to both cooking and consumption, like, milk, curd, ice creams, dairy whitener, skimmed milk powder, ghee, paneer, and lots more.
Rights issues are one of the corporate actions that are taken by a listed company's board of directors. Under the issue, fresh equity shares are offered by a company to those who are existing shareholders as on the record date fixed for the said action. The shareholders are offered rights to buy fresh shares using their 'Rights Entitlement'. The additional shares are mostly offered at a discounted price compared to the market price.
MINT PREMIUM See All
Through rights issue, a listed company either raises fresh capital for further business development or to improve its debt-to-equity ratio. This also leads to a dilution of equity of the stock.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less