Shares of Minda Industries jumped over 5% after the auto components makers board fixed the issue price at Rs 250 per equity share for its Rs 250-crore rights issue.
The stock price has seen a steady rise in the last 15 days and was trading at Rs 295.75, up Rs 15.10, or 5.38%. It touched an intraday high of Rs 300.65 and an intraday low of Rs 281.25.
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.
The rights entitlement ratio 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 — August 17.
On June 29, the board approved the issue of equity shares of face value of Rs 2 each by way of a rights issue to eligible shareholders for an amount aggregating up to Rs 250 crore.
The rights issue will open on August 25 and close on September 8; and the last date for on market renunciation is September 3, 2020.
Minda Industries is one of the leading auto ancillary player with diversified product portfolio and having strong presence in 2-wheeler and 4-wheeler. It is expected to grow better than the industry on account of its diversified set product portfolio which includes switches, lighting systems, sensors, air bags, infotainment, batteries, alloy wheels, blow molded parts etc.
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