Preference share can be noted as a hybrid between the common stocks and the bond issues. Many investors are more attracted to the preference shares for their stability, preferred status over common shares for dividends, bankruptcy liquidation, and higher payments than bonds. The companies like to issue preference shares to obtain equity financing without diluting voting rights. The management of Veerhealth Care Ltd. announced the Preferential Issue Of Shares, after its board meeting today, on November 23. It is a micro-cap stock with an Rs. 11 crore market capitalization.
The company today informed the stock exchanges that the board of directors approved the raising of funds of up to Rs. 30,650,000 by creating, issuing, offering, and allotting equity shares up to 30,65,000 having a face value of Rs. 10 each at Rs. 18.25 per equity shares aggregating to Rs. 55,936,250 by way of a preferential issue.
Currently, this stock closed at Rs. 17, on November 23. In the last 1 month, its share price gained by 19.89%, and in the last 6 months its share price surged by 47.83%. The 52-week high level of this stock is Rs. 20.65, and the 52-week low level of this stock is Rs. 9.65. The stock is now trading at a near 52-week high price.
The company's revenue in Q2 FY23 gained to Rs. 3.93 crore, compared to Rs. 2.86 crore in the earlier quarter, while its Total Income surged to Rs. 4.34 crore in the September quarter, compared to Rs. 2.91 crore in the previous quarter.
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