Small-cap stock below ₹10 declares fund raise through rights issue. Details here

Small-cap stock below ₹10: The board of directors of Toyam Sports Ltd has declared fund raise to the tune of ₹50 crore. The small-cap company informed Indian stock market bourses about the fund raise move and said that company would offer rights issue to generate the above-mentioned ₹50 crore fund. In this fund raise programme, the penny stock below ₹10 further informed about the constitution of rights issue committee to proceed with the rights issue. The small-cap company also announced to increse its authorised capital to ₹110 crore.

Toyam Sports rights issue 2023

The small-cap stock below ₹10 informed Indian exchanges about the fund raise move citing, "In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company in their meeting held today i.e., Wednesday, October 11, 2023 at the Registered Office of the Company, interalia approved Fund raising for an aggregate amount not exceeding Rs. 50 Crore (Rupees Fifty Crores), through issuing Partly paid-up Equity shares by way of Rights issue to the eligible equity shareholders of the Company as on Record date (to be notified subsequently within due course), in accordance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, SEBI Listing Regulations, along with relevant circulars issued by the Securities and Exchange Board of India, Companies Act, 2013."

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The company board also aproved constitution of the Rights Issue Committee to proceed with the Rights issue and, inter-alia, decide the other terms and conditions of the Rights Issue, including but not limited to deciding on the record date, approval of Draft letter of offer, determining the rights issue price, rights entitlement ratio, timing and terms of payment, appointment of intermediaries and other related matters.

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Raise in authorised capital

The small-cap stock also informed about increasing the authorised capital to ₹110 crore citing, “In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company in their meeting held today i.e., Wednesday, October 11, 2023 at the Registered Office of the Company, interalia approved to increase the Authorized Share Capital of the Company to Rs. 110 crores, to accommodate the present and future fund raising, if any, and consequent alteration in Capital Clause of the Memorandum of Association of the Company.”

This small-cap stock is available for trade on BSE only. The BSE listed stock has a market cap of ₹334 crore. Its current trade volume is 13,52,997 and around three hours of trade is still left during Thursday session. It is a beaten down stock and it has lost to the tune of over 60 per cent in YTD time.

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