Small-cap stock rises 7% on plans to raise funds through rights issue. Details here

Stock Market Today: Small-cap stock Avantel gained more than 7% during the intraday trade on Monday, May 5, on plans to raise funds through rights issue. As per Avantel, it plans to raise ₹80.90 crore through the rights share issue.

Avantel Rights Issue Details

Avantel had intimated the National Stock Exchange of India (NSE) and the BSE that the Board of Directors at their meeting held on May 1, 2025, had considered and approved the terms of the rights issue.

The funds will be allocated toward expanding the company's manufacturing facility infrastructure. The rights issue is scheduled to open on May 15, 2025, and will close on May 22, 2025.

As per the release, the proposed securities for fundraising are fully paid-up equity shares of face value of ₹2/ - each (“Rights Equity Shares”). 

Avantel Ltd plans to issue up to 2,02,26,100 fully paid-up equity shares of face value of ₹2/- each.

These shares will be priced at ₹40 per share, which as per the release includes a premium of ₹38. Eligible shareholders as of the record date (May 7, 2025) will be entitled to receive 10 new equity shares for every 121 shares they currently hold. The issue size is ₹8090.44 lakhs or ₹80.90 crore.

Amount to be paid for the rights issue: The full amount of the issue price, being ₹40, will be payable on application.

Record date for Avantel Ltd rights issue: May 7, 2025, has been decided as the record date for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue.

Avantel rights issue period: The rights issue opening date is Thursday, May 15, 2025.

Last Date of market Renunciations is Tuesday, May 20, 2025.

Rights Issue Closing Date: Thursday, May 22, 2025.

About Avantel Ltd

For its clients, who are mostly from the aerospace and defense industries, Avantel Limited designs, develops, and maintains wireless and satellite communication devices, defense electronics, radar systems, and network management software applications.

Avantel Ltd share price movement

Avantel Ltd share price gained more than 7% in the intraday trades to Intraday highs of = ₹124 after opening at ₹117.60. The Avantel share price had closed at ₹114.95 on Friday.

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