Small-cap stock under ₹50 declares rights issue. Record date, entitlement ratio, other details in 10 points | Stock Market News

Smallcap stock Welspun Specialty Solutions was in focus after the company board approved raising funds up to ₹350 crore by way of a rights issue.

“This is further to the meeting of the Board of Directors of the Company (the “Board”) held on January 27, 2025, approving the issuance of equity shares of the Company (the “Rights Equity Shares”) for an amount not exceeding ₹350 crore, by way of a rights issue,” the filing read.

The record date for the rights issue is set as March 1, 2025. The offer will open on Monday, March 10, 2025, and will close on Wednesday, March 19, 2025.

A rights issue is a way for a company to raise capital by offering existing shareholders the right to purchase additional shares at a discounted price, in proportion to their existing holdings. This allows the company to raise funds without issuing shares to the public or taking on debt.

Let’s take a look at 10 key things to know about the issue

Issue Size: The company will offer 13,25,22,289 rights equity shares.

Issue Amount: This will be for an amount aggregating to ₹349.86 crore

Issue price: The rights issue price is set at ₹26.4 per rights equity share, which includes a ₹20.40 premium.

Record Date: The record date for the rights issue is set as March 1, 2025.

Issue dates: The offer will open on Monday, March 10, 2025, and will close on Wednesday, March 19, 2025.

Entitlement Ratio: The Rights Equity Shares are being offered on a rights basis to Eligible Equity Shareholders in the ratio of 1 (One) Equity Share(s) for every 4 (Four) Equity Shares held on the Record Date.

Company shares: Before the rights issue, the company has 53,00,89,156 outstanding shares. If fully subscribed, this will increase to 66,26,11,445 shares.

About the firm: Welspun Specialty Solutions produces various Alloy Steel grades through the Electric Arc Furnace (EAF) and Ladle Refining Furnace (LRF) VD route, with a heat size of 35 tons. Stainless Steel is produced through EAF/EF, LRF, VD, and AOD/VOD routes. The products are cast through both, the continuous cast, as well as the ingot route.

Stock Performance: In the past one year, Welspun Specialty shares have gained over 4 per cent against Sensex’s rise of 2 per cent. Moreover, the smallcap stock fell almost 4 percent in February so far after 9 percent decline in January.

Financial Performance: Welspun Specialty Solutions reported a net loss of ₹3.60 crore in the December 2024 quarter, marking a decline of 159.02 percent from the ₹6.10 crore loss recorded in the same period last year. Meanwhile, net sales saw an improvement, rising 11.04 percent to ₹194.05 crore in December 2024, compared to ₹174.75 crore in December 2023.

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