Jyoti Structures approves ₹175 crore rights issue: Check dates, entitlement and more
The board of Jyoti Structures on Wednesday (March 20) approved the offer and issuance of fully paid-up equity shares of face value of ₹ 2 each to raise ₹175 crore through a rights issue, the company said in an exchange filing.
The company has fixed the rights issue price at ₹15 per equity share, including a premium of ₹13 per equity share. The rights issue price is a discount of 37.5% to Tuesday’s closing price of Jyoti Structures’ shares.
Existing shareholders of Jyoti Structures will be entitled to six rights shares of the company for every 37 equity shares they currently hold.
The record date for the rights issue has been fixed as March 21, 2024. This means that shareholders who purchase shares of Jyoti Structures after the said date, will not be eligible to participate in the rights issue.
A rights issue is where a company raises funds by selling additional shares to existing shareholders of the company. In case an individual does not own shares of the company as of the record date, he or she is not eligible to participate in the rights issue.
The rights issue period is scheduled to open on March 28, 2024, with a closing date on April 10, 2024.
A slew of companies, including Grasim, South Indian Bank and Indiabulls Housing Finance have recently launched and completed their respective rights issues.
Shares of Jyoti Structures Ltd. were trading 3.89% higher at ₹25.40 today. The stock has risen over 270% over the last 12 months.