Board of these two penny stocks announces rights issue: Do you own any?

3 min read . Updated: 04 Nov 2022, 04:18 PM IST Vipul Das

The record date is the day on which a company issues a right to its shareholders.

The Board of Directors of Family Care Hospitals Ltd and Inditrade Capital Ltd have announced rights issue.

Inditrade Capital Rights Issue

The company has said in a stock exchange filing that its Board of Directors has “Approved the issuance of equity shares of the Company having face value of Rs. 10/- each, on a Rights basis to eligible equity shareholders of the Company as on the Record Date (to be determined and notified later) aggregating to approximately Rs. 40.42 Crores (the “Rights Issue"), in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, the Companies Act, 2013 and other applicable laws/regulations and subject to such regulatory and statutory approvals, as may be required, on the following terms: a) Rights Entitlement Ratio: 5 equity shares for every 13 equity shares held by eligible shareholders as on the Record Date. b) Rights Issue Price: Rs. 45/- (Rupees Forty-Five only) per equity share [including a premium of Rs. 35/- (Rupees Thirty-Five only) per equity share]."

The shares of Inditrade Capital Ltd closed today at ₹41.25 apiece, up by 2.74% from the previous close of ₹40.15. In trade today the stock recorded a total volume of 45,769 shares compared to the 20-Day average volume of 10,182 shares. In the last 1 year, the stock has gained 21.32% and on a YTD basis, the stock has gained 23.50% so far in 2022.

Family Care Hospitals Ltd

The company has said in a stock exchange filing that its Board of Directors has “Considered and approved, subject to receipt of relevant approvals from Regulatory authorities, as may be required, raising of funds upto 42.50 crores through issuance and allotment of equity shares of face value of Rs. 10 each ("Equity Shares") to the eligible equity shareholders of the Company on Rights basis, on such terms and at such price and ratio as may be decided subsequently by a Right Issue committee of the Board."

The shares of Family Care Hospitals Ltd closed today at ₹14.90 apiece, down by 0.67% from the previous close of ₹15. In the last 1 year, the stock has fallen 27.85% and on a YTD basis, the stock has fallen 30.37% so far in 2022.

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As per the data available on NSE, “Section 62(1) of the Companies act, 2013 provides for further issue of share capital by a Company, if it proposes to increase its subscribed capital by the way of fresh issue of shares. Such shares should be first offered to existing shareholders at the date of the offer, are holders of equity shares of the company in proportion, by sending a letter of offer subject to the following conditions. The object is, of course, to ensure equitable distribution of Shares and the proportion of voting rights is not affected by issue of Fresh shares. When an issue of shares or convertible securities is made by an issuer to its existing shareholders as on a particular date fixed by the issuer (i.e. record date), it is called a rights issue. The rights are offered in a particular ratio to the number of shares or convertible securities held as on the record date."

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).