Penny Stock Below Rs 50 Allots 9,00,000 Equity Shares To Non-Promoters Post 1:10 Stock Split

On Wednesday, the shares of Rushil Decor ended 2.13% higher at Rs 38.40 apiece securing a market cap of Rs 1,038.59 Cr after the company announced the allotment of 9,00,000 equity shares to non-promoters post 1:10 Stock Split.

At its meeting on Wednesday, August 21, 2024, the company's Board of Directors' Fund Raising Committee considered and approved the allotment of 9,00,000 equity shares with a face value of Rs. 1 each (after the split of shares) to a total of 2 allottees who are Non-Promoters upon the conversion of warrants into an equal number of Equity Shares in accordance with the Securities and Exchange Board of India's regulations.

The company released a statement on December 23, 2023, informing stock exchanges that it had issued 41,30,000 convertible warrants at a price of Rs. 297/-per warrant to a total of 38 allottees on a preferential basis. Of these, Rs. 30.66 Crores, or 25% of the issue price, was already received as the initial subscription amount at the time the warrants were issued.

Out of the total 41,30,000 convertible warrants that the firm allocated on December 23, 2023, the company has so far granted 8, 10,000 equity shares by conversion of 8, 10,000 warrants (pre-split) to 16 allottees (Promoter/Promoter Group and Non-Promoters). equity shares of the corporation split or subdivided from one share of Rs. ten each into ten equity shares of Rs. one each as of the record date August 09, 2024.

From the remaining 75%, two non-promoter allottees have deposited a total of Rs. 2,00,47,500 towards their respective subscriptions and have exercised their right to convert 9,00,000 warrants into 9,00,000 equity shares of the company, each with a face value of Rs. 1/- (after the shares are split). Two allottees have chosen to execute and convert the remaining convertible warrants, which are worth Rs. 1/-each and can be converted into 9,00,000 equity shares of the firm when the shares are subdivided.

"In this regard, the Fund raising committee of Board of Directors of the Company has, at its meeting held on 21st August, 2024, considered and approved the allotment of 9,00,000 equity shares of the Company offace value of Rs. 1/s each, at a premium of Rs. 28.7/- per share (post effect of split of shares), pursuant to the exercise and conversion of 9,00,000 convertible warrants against receipt of the balance subscription amount (i.e. 75% of the issue price) to the allottees," said Rushil Decor in a stock exchange filing.

Founded in 1993, Rushil Décor Ltd. is a prominent firm in the laminate and MDF panel boards sector in India, with a global presence spanning over 53 countries.