Penny stock trading at a discount of 56%, Board recommends 1:1 rights issue

With a market valuation of Rs. 47.33 Cr., Jet Freight Logistics Ltd. is a small-cap company that engages in the transport services industry. The Board of Directors has fixed a record date for the purpose of determining the equity shareholders' eligibility to receive the rights issue in the proportion of a 1:1 ratio.

The company has said in a stock exchange filing that “This is in furtherance to our intimation on the Outcome of the meeting of the Right Issue Committee of Board of Directors of the Company held on 14th December, 2022, approving the issue of 2,32,01,892 equity shares of face value Rs. 5/- each at an issue price of Rs. 16.25/- per equity share, aggregating to an amount of Rs. 37,70,30,745/- (Rupees Thirty-Seven Crore Seventy Lakh Thirty Thousand Seven Hundred and Forty-Five only) by way of a rights issue to the existing equity shareholders of the Company in the ratio of 1 (one) fully paid-up equity share for every 1 (one) fully paid-up equity share held by existing shareholders as on the record date (“Record date”) to be decided by the Board of Directors/Committee. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), 2015, the Record date for the purpose of determining the shareholders who shall be eligible to apply for the Rights Issue, would be Wednesday, January 11, 2023, as decided by the Right Issue Committee of Board of Directors in its meeting held today, i.e., Thursday, January 05, 2023.”

Rights issue opening date is January 20, 2023, last date of market renunciations is January 25, 2023 and rights issue closing date is January 31, 2023. Outstanding equity shares prior to the rights issue is 2,32,01,892 fully paid-up equity shares of face value of Rs. 5/- each and outstanding equity shares post rights issue (assuming full subscription) is 4,64,03,784 fully paid-up Equity Shares of face value of Rs. 5/- each. And terms of payment is full amount of Rs. 16.25 per equity share is payable on application.

The shares of Jet Freight Logistics Ltd closed on Friday at ₹20.35 apiece level, up by 1.75% from the previous close of ₹20. The stock recorded a total volume of 132,954 shares compared to the 20-Day average volume of 159,538 shares. The stock has dropped 19.09% over the past five years, and 34.35% during the past year. The stock has plummeted 19.72% during the past six months. In the last 5 years, the stock has fallen 19.09%, and in the last 1 year, the stock has fallen 34.35%. In the last 6 months, the stock has fallen 19.72%. The stock had touched a 52-week-high of ₹47.15 on (24-January-2022) and a 52-week-low of ₹15.75 on (26-Dec-2022), indicating that at the current market price, the stock is trading 56.83% below the 1-year high and 29.20% above the 1 year low.