NECC rights issue 2023: Small-cap stock trades at 10% premium before allotment date
- NECC rights issue price has been announced at ₹18 per equity share
NECC rights issue 2023: North Eastern Carrying Corporation Ltd is a small-cap company with a market cap of around ₹187 crore. The small-cap company recently announced to raise funds through issuance of rights. The board of directors of the company declared NECC rights issue price at ₹18 per share. NEC rights issue opened on 14th June 2023 and the issue closed on 11th July 2023. After closure of NECC rights issue 2023, market is eagerly awaiting the NECC rights issue allotment date, which is most likely on 24th July 2023 i.e. on Monday next week. However, ahead of rights issue allotment, NECC shares are trading at around ₹19.80 apiece levels, which is around 10 per cent higher from the NECC rights issue price of ₹18 apiece.
NECC rights issue details
Informing Indian stock market bourses about the beginning of rights issue allotment process, NECC said, "In accordance with the Basis of Allotment finalized in consultation with BSE Limited (Designated Stock Exchange}, the Lead manager to the Issue and the Registrar to the Issue, the Right Issue Committee of the Company at its meeting held on July 17, 2023 approved the allotment of 4,51,77,602 (Four Crore Fifty One Lakhs Seventy Seven thousand Six Hundred and Two) partly paid-up Equity Shares bearing distinctive numbers from 50197337 to 95374938 having a face value of Rs. 10/- (Rupees Ten Only) each in dematerialised form for cash at an issue price of Rs. 18/- (Rupees Eighteen Only) per Rights Equity Share, ie. at a premium of Rs. 8/- (Rupees Eight Only) per Rights Equity Share (wherein the applicants were required to pay Rs.9.00/- per Rights Equity Share on application and the balance Rs. 9.00 being payable on subsequent call(s) as may be decided by the Board), to the respective Eligible Equity Shareholders of the Company."
So, investors will have to pay ₹9 per share at the time of share allotment, ₹9 per share at the time of one or more subsequent Call(s) as determined by the Board/Committee at its sole discretion, from time to time.
On entitlement for share allotment, the small-cap company has already made it clear that a beneficiary shareholder will be entitled for nine rights equity share for every ten shares held on the record date, which was on 2nd June 2023. On 2nd June 2023 i.e. NECC rights issue record date, NECC share price had ended at ₹20.90 apiece levels, around 16 per cent higher from NECC rights issue price of ₹18 per equity share.
NECC rights shares are proposed for listing on BSE and NSE and the NECC rights issue listing date is 27th July 2023.
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