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UPL announces rights issue to raise ₹3,378 crore, to issue shares in the ratio of 1:8 | Stock Market News
Source: Live Mint
UPL announced on Wednesday, November 20, that it would raise ₹3,377.74 crore through a rights issue of 9,38,25,95 partly paid shares at ₹360 per rights equity share. The company will issue shares in the ratio of 1:8, or one equity share for every eight equity shares held.
The record date for this purpose has been fixed as Tuesday, November 26, 2024, while the rights issue’s opening and closing dates are Thursday, December 5, and Tuesday, December 17, respectively.
A rights issue is a way for companies to raise additional capital by offering existing shareholders the right to purchase new shares at a discounted price. The company’s shareholders can choose to subscribe to the new shares, sell their rights, or ignore the offer.
“The Rights Issue Committee of the Board, at its meeting held on Wednesday, 20 November 2024, considered and approved one rights equity share for every eight fully paid-up equity shares of the company held by the eligible equity shareholders of the company, as on the record date,” said UPL in a stock exchange filing.
UPL shares closed 1.93 per cent higher at ₹546.85 on the BSE on Tuesday, November 19. At the price of ₹360, the rights issue price is at a 34.2 per cent discount to the previous day’s (November 19) closing price of the stock.
UPL share price trend
UPL shares have been subdued over the last year. They are down about 2 per cent versus an 18 per cent gain in the equity benchmark Sensex.
The stock hit a 52-week high of ₹625 on October 1 this year after it hit a 52-week low of ₹448 on March 14 this year.
On a monthly scale, the stock fell 10 per cent in October after clocking gains for six consecutive months. So far in November, it has declined 1.3 per cent.
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