Advik Capital, penny stock under ₹5, sets record date for rights issue. Details here

Penny stock Advik Capital was in focus today, September 9, after its board approved a rights issue of equity shares. The board outlined crucial details, including the price, record date, entitlement ratio, and other terms related to the issue. This decision aims to raise capital and expand its operations.

Board Approval and Rights Issue Details

The board of Advik Capital approved the rights issue proposal during a meeting held on September 7, according to a regulatory filing. The company plans to issue fully paid-up equity shares with a face value of Re 1 each. 

The company plans to offer 19,98,05,013 equity shares through the rights issue, amounting to ₹4,995.13 lakh, assuming full subscription after the allotment process.

The issue price is set at ₹2.50 per share, which includes a premium of ₹1.50 per equity share. Eligible shareholders can acquire additional shares at this discounted price.

Rights Issue Record Date and Entitlement Ratio

To determine shareholder eligibility, penny stock Advik Capital has set September 12, 2024, as the record date for the rights issue. Shareholders who hold equity shares by this date will be entitled to participate.

The entitlement ratio is 14:30, meaning shareholders will be eligible to receive 14 rights equity shares for every 30 fully paid-up shares they hold. Once the rights issue is completed, the total number of outstanding equity shares will increase to 62,79,58,613.

Subscription Dates for the Rights Issue

The rights issue will open for subscription on September 24 and remain open until October 4, giving shareholders a window to exercise their rights and subscribe to the newly issued shares. Rights issues allow investors to increase their ownership stake at a lower price than the current market rate. 

Stock Performance and Market Reaction

Following the rights issue announcement, Advik Capital's stock faced some volatility, dropping by 7.77 percent to ₹2.61 during intra-day trading. The stock is now nearly 40 percent below its 52-week high of ₹4.35, reached in January 2024. However, it has gained approximately 27 percent from its 52-week low of ₹2.06, recorded in October last year.

In terms of year-to-date performance, the stock has advanced over 24 percent in 2024 and seen an overall gain of 14 percent in the past year.

About the Firm

Advik Capital is an NBFC registered with the Reserve Bank of India, focusing primarily on providing financial loans and ancillary services. The company engages in various activities, including offering financial assistance through loans and advances to industrial concerns, financing leasing operations, and investing in emerging businesses and their securities.

The company is also involved in the purchase, sale, and leasing of machinery and plants, extending bridge loans to corporates, and other financial services aimed at supporting business growth and development.

Advik Capital’s rights issue presents an opportunity for shareholders to invest further in the company at a discounted price. As the stock continues to experience fluctuations, it will be interesting to see how the rights issue impacts its market performance in the coming months.