Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Interesting Articles

| More

Are promoters using rights issue to increase their stake in the company?

Posted On: 2020-08-30 21:35:44 (Time Zone: IST)

A deluge of rights issues raised money from the market in the recent past. The relaxation of some rules by SEBI in raising funds made promoters to quickly realize an option to raise their stake in the company and have a war chest built to be ready for operations post the Covid19 pandemic related shutdown. We will look at a few rights issues to prove our observation.

Name of the companyPre Rights Issue StakePost Rights Issue StakeChange
Aditya Birla Fashion Retail Ltd59.07%59.79%+0.72%
Arvind Fashions Limited35.58%39.74%+4.16%
PVR Limited18.56%18.79%+0.23%
Refex Industries Limited34.51%49.72%+15.21%
Shriram Transport Finance Company Limited26.25%26.48%+0.23%

The promoter of Aditya Birla Fashion Retail Ltd (ABFRL) have increased their stake from 59.07% to 59.79%. The promoters got 5,95,93,649 equity shares through the rights issue. The company issued partly paid shares through a rights issue in the ratio of 9 shares for 77 shares held. The shares were offered at Rs. 110 (Face Value: Rs. 10 and Premium: Rs. 100) out of which Rs. 55 per share was paid on application and the balance at a later date. The partly paid up shares are listed in the stock exchanges.

The Promoters and Promoter Group of Arvind Fashions Limited ("Company"), were allotted 1,83,28,507 Equity Shares pursuant to the rights issue of the company, taking the overall voting rights and shareholding from 35.58% to 39.74% of the total paid up share capital of the Company. The company issued shares through a rights issue in the ratio of 62 shares for 91 shares held by existing shareholders. The shares were offered at Rs. 100 (Face Value: Rs. 4 and Premium: Rs. 96) on application.

The Promoters of Shriram Transport Finance Company Limited ("Company"), increased the stake in the company from 26.25% to 26.48% of the total paid up share capital of the Company through the rights issue. The company issued shares through a rights issue in the ratio of 3 shares for 26 shares held by existing shareholders on the record date. The shares were offered at Rs. 570 (Face Value: Rs. 10 and Premium: Rs. 560) on application.

The promoters of PVR Ltd increased their stake to 18.79% from 18.56% as of June 30, 2020. The company raised funds of Rs. 29979.16 lakhs through rights issue of 38,23,872 equity shares at a price of Rs. 784 per equity share (Face Value: Rs. 10 and Premium: Rs. 774) in the ratio of 7 equity shares for every 94 equity shares held by the eligible equity shareholders of the company on the record date.

The promoters of Refex Industries Ltd increased their stake from 34.51% as of June 30, 2020 to 49.72% through the recently concluded rights issue. The company had offered 5,526,848 equity shares face value of Rs. 10/- each at a price of Rs. 45 per equity share (Face Value: Rs. 10 and Premium: Rs. 35) in the ratio of 5 equity shares for every 14 equity shares held by shareholders of the company on the record date. The promoters lapped up 5,102,322 equity shares or 92.31% of the rights issue that was on offer.

Click here to send ur comments or to

Other Headlines:

Electricity (Amendment) Bill 2021 - A Review - Balaji Vaidyanath and Devang Patel

Tips to save Income tax in FY 2021-22

NPS Growing at Decent Pace, Performed Well Even During Pandemic Period: PFRDA Chairman

The Yamuna Syndicate Limited acquires 20,000 shares of ISGEC Heavy Engineering Ltd from open market

Decoding: Pledging of shares and upfront margins in the cash market!

SIDBI joins hands with Govt. of Rajasthan for the development of MSME ecosystem in the State

All you want to know about Rights Entitlement

45% of the customers have taken moratorium PAN India; more observed in the northern region of the country: Finway

DISCOM dues balloon to ₹1.199 trillion

TNPL recommends dividend of Rs. 6 - Dividend Yield @ 5.45%

HUDCO - Rs. 2.35 dividend recommended - Dividend Yield @ 7.01%

PTC India Ltd - Rs. 5.50 dividend recommended - Dividend Yield @ 11.46%

PNB Gilts Ltd - Rs. 3 dividend recommended - Dividend Yield @ 8.57%

How to apply for Rights Issue of Arvind Fashions Limited?

How to apply for Rights Issue of Aditya Birla Fashion and Retail Limited?

An insight on Aarti Surfactants Limited

Covid-19 and its impact on businesses

Nifty Gained 8% in the June Series, Bank Nifty Surged 12%-Highest Since March 19 - HDFC Securities

IMF Growth Revision for India - Acuité Ratings & Research

Co-operative Banks - RBI Supervision - Acuité Ratings & Research

HDFC Securities views on relaxations announced by SEBI

India can reduce China trade deficit by over $8 billion in FY21-22 - Acuité Ratings & Research

How can investors preserve their wealth during times of crisis

JM Financial Yield Enhancer (Distressed Opportunity) Fund I raises Rs.160 crore in its first close

Samco Securities launches BTPT - Buy Today, Pay In Two days for Investors Buying Stocks

No data breach of BHIM app: Report

India's sovereign rating downgrade by Moody's - Acuité Ratings & Research

Banking Sector Credit Trends - Unusual trends - HDFC Securities

Rollover Report for May - June 2020: Angel Broking

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Q4 GDP

Mr. Dhiraj Relli views on GDP Numbers - HDFC Securities

Banking Sector Update - NIM compression on the cards - HDFC Securities

May series ends with a bang: Angel Broking

May 2020 F&O Series Expiry - Mr. Nandish Shah, Technical Research Analyst, HDFC Securities

Views on Impact of Locusts Attack on Agriculture - Acuité Ratings & Research

ICAI establishes Center for Audit Quality

Bharti Telecom raised over Rs. 8433 crores through Accelerated Book-build offering of equity shares of Bharti Airtel

SATYA MicroCapital raises INR 105 crore equity funding from Japan-based Gojo & Company Inc.

Mr. Rajnish Kumar, Chairman, SBI & IBA on the announcements made by RBI today

Views of Mr. Umesh Revankar, MD and CEO, Shriram Transport Finance on RBI announcement

Views of Mr. George Alexander Muthoot, MD, Muthoot Finance on RBI announcement today

Views of Ms. Anagha Deodhar - Economist, ICICI Securities on the RBI announcement today

Views on RBI Policy announcement today - Federal Bank

RBI Monetary Policy (May 2020) by Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank

Religare Finvest Ltd. on today's monetary policy by RBI

RBI monetary policy announcement - Mr. Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd

RBI's proactive measure will help revive economy: Dr.Niranjan Hiranandani

Mr. Dhiraj Relli views on today's announcement made by RBI

Views of Mr. R K Gurumurthy, Head - Treasury, Lakshmi Vilas Bank on the RBI announcement today

Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities on RBI announcement

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020