Bhushan Steel has dipped almost 10% to Rs 437 after the company has announced a rights issue in the ratio of 1:15 at price of Rs 335 per share.
The New Delhi-based steel maker will be issuing one equity share at a price of Rs 335 for every 15 equity shares held by its existing shareholders through the issue.
“The company planning to raise Rs 474 crore through rights issue has fixed January 16, 2013 as the record date for the purpose,” Bhushan Steel said in a statement.
The company said that if the shareholding of any eligible equity shareholders is less than 15 equity shares or not in a multiple of 15, the fractional entitlement of such eligible equity shares will be ignored for computation of rights entitlement.
Bhushan Steel intends to use the money to part-finance its expansion activities, particularly in Odisha.
The stock opened at Rs 485 and hit a low of Rs 427 on the BSE. A combined 1.09 million shares have changed hands on the counter so far against an average less than 200,000 shares that were traded daily in past ten trading days.
