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Rights issues 2024: Shares of Sakuma Exports Ltd will be in focus when the stock market opens on April 15 (Monday).
The Board of Directors of Sakuma Exports has declared rights issue of equity shares for the eligible shareholders. The company has fixed April 15, 2024 as the record date for the purpose of determining the eligibility of equity shareholders to receive the rights entitlement in the rights issue.
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In a stock exchange filing, Sakuma Exports said the Board of Directors approved “the issue of 7,89,84,298 equity shares of face value of Re. 1 each (Equity Shares) to Eligible Equity Shareholders aggregating up to Rs. 19983.03 lakhs in accordance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (SEBI ICDR Regulations).”
“The Board of Directors, in accordance with Regulations 30 and Regulation 42 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, as amended and Regulation 68 of the SEBI ICDR Regulations, at its meeting held today ie., April 8, 2024, has considered and approved April 15, 2024 as the record date for the purpose of determining the Eligible Equity Shareholders who are eligible to apply for the Rights Equity Shares, in the Issue (Record Date),” it added.
Shares of Sakuma Exports will trade ex-rights on Monday.
Sakuma Exports stock closed at Rs 25.85, down 1.90 per cent on April 12.
What is the rights issue of equity shares?
Companies declare rights issues to raise additional funds.
In the rights issue, companies grant existing shareholders the right, but not the obligation, to buy new shares at a discount to the current trading price. This type of issue gives existing shareholders securities called rights.
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The companies give shareholders a chance to increase their exposure to the stock at a discount price.
In a rights issue, because more shares are issued to the market, the price of the stock is diluted and will likely go down.
Until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way that they would trade ordinary shares.
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Published: 15 Apr 2024, 06:25 AM IST
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