Minda Industries advances 7% after Board fixes record date for rights issue

Shares of Minda Industries gained as much as 7.12 per cent to Rs 300.65 on the BSE on Wednesday after the company fixed August 17 as the record date for its Rs 250 crore rights issue. 

"The Board of Directors at its meeting held on August 11, 2020, has approved the issue of equity shares of face value of Rs 2 each of the Company, by way of a rights issue to the eligible shareholders of the Company for an amount aggregating up to Rs 250 crores. The entitlement rato is fixed as one equity share for every 27 held as on the record date," it said in a regulatory filing. READ HERE

The company will issue 10 million fully paid equity share of face value of Rs 2 each for amount aggregating to Rs 250 crore. The rights issue will open on August 25 and close on September 8, 2020. 

A rights issue is when a company offers its existing shareholders the chance to buy additional shares for a reduced price. Usually the discounted price will stand for a specified time frame, after which it is returned to normal.

At 1:15 pm, the stock was quoting at Rs 296 per share, up 5.5 per cent on the BSE, as against mildly changed benchmark S&P BSE Sensex at 38,394 level. The stock had hit 52-week high of Rs 426 on January 27, 2020, while it hit 52-week low of Rs 209 on March 19, this year.