Advik Capital Rights Issue of Rs. 49.95 Cr Opens: Details In 8 Points

Advik Capital Ltd is a micro-cap NBFC which recorded a market cap of Rs 112.60 Cr in the trading session of Monday. The company's board of directors has accepted a rights issue request for up to Rs 49.95 crore, which has put the penny stock trading below Rs 5 in the spotlight. The price per equity share for the rights offering has been set at Rs 2.40. The Advik Capital Rights Issue 2023 will begin on September 18 and run until September 29.

"Pursuant to the shareholder approval obtained through postal ballot on May 18, 2023 and Draft Letter of Offer dated July 18, 2023 submitted for obtaining 'In Principle Approval' for proposed Right Issue of up to Rs. 49.95 Crore, and 'In Principle Approval' received from BSE Limited vide its letter bearing No. LOD/Rights/AB/FIP/446/2023-24 dated August 08, 2023," said Advik Capital in a stock exchange filing.

Advik Capital Rights Issue

1. Total number of securities proposed to be issued: Up to 20,79,60,320 Equity Shares of face value of Rs. 1/- each for an amount aggregating up to Rs. 4,991.04 Lakhs.

2. Issue Price: Rs. 2.40/- per Equity Share (Including premium of Rs. 1.40/- per share)

3. Record Date: Thursday, September 07, 2023 for the purpose of determining the shareholders entitled for Rights Issue ("Eligible Equity Shareholders").

4. Right Issue Period: Right Issue Opening Date- Monday, September 18, 2023, Last Date for on Market Renunciation of Rights Entitlement- Tuesday, September 26, 2023, Right Issue Closing Date- Friday, September 29, 2023.

5. Right entitlement Ratio: 17 equity shares for every 18 equity shares held by the eligible equity shareholders of the company as on the record date with the right to renounce.

6. Outstanding Equity Shares prior to the Rights Issue: 22,01,93,280 Equity shares of Re. 1/- each.

7. Outstanding Equity Shares Post Right Issue (assuming full subscription): 42,81,53,600 Equity shares of Re. 1/- each.

8. Terms of Payment: Full amount of Rs. 2.40/- per Equity Share (Including premium of Rs. 1.40/- per share) payable on application.

On Monday, the shares of Advik Capital closed on the BSE at Rs 2.63 apiece with a market cap of Rs 112.60 Cr. The stock made a 52-week-high of Rs 5.01 (09/03/2023) and a 52-week-low of Rs 1.90 on (14/08/2023). During Q1FY24, the company recorded promoters shareholding of 21.80%, FIIs stake of 0.76% and public stake of 77.45%.