Shares of Minda Industries in intraday trade on August 12, 2020 jumped as much as 7% to day's high price of Rs. 300.65 per share on the BSE. On August 11, the company's board fixed the issue price for its Rs. 250 crore rights issue at Rs. 250 per share.
The counter at around 12:30 pm was trading with volume of 48544 shares, in comparison to its 5-day average of 9,826 shares, which is a substantial increase.
The board of directors of the company approved fixing of issue price at Rs 250 per equity share, including a premium of Rs 248 per equity share over face value of Rs 2 per equity share, Minda Industries said in a regulatory filing.
The rights entitlement ratio for the issue has also been fixed at one fully paid-up equity shares for every 27 equity share held by eligible shareholders as on the record date which is August 17, it added.
On June 29, the company's board had given the approval for the issuance of equity shares of Rs. 2 face value each through the rights issue route to the eligible shareholders for an amount up to Rs. 250 crore.
The rights issue will open for subscription on August 25 and end on September 8 and the last date for on market renunciation is September 3, 2020, the company said.
Minda Industries is into auto components manufacturing and has well diversified product profile with strong presence both in the 4-wheeler and 2-wheeler market. Brokerage house KR Choksey has placed a 'buy' call on the stock with a target price of Rs. 336 per share.
At 12:45 pm, the stock of Minda Industries quotes higher by 4.81% or Rs. 13.5 at Rs. 294.15 apiece on the BSE.