Rights shares: 2 multibagger stocks to turn ex-rights in the coming week
4 min read 31 Jul 2022, 04:13 PM ISTIn the upcoming week or the first week of August, the shares of Mercury Metals Limited and KCL Infra Project Limited will become ex-rights.
PremiumIn the upcoming week or the first week of August, the shares of Mercury Metals Limited and KCL Infra Project Limited will become ex-rights. The stock will begin trading ex-rights on August 3rd as a result of the Board of Mercury Metals having set August 4th as the record date. The stock will become ex-rights on August 4 as a result of the Board of KCL Infra has declared August 5 as the record date. The ex-date falls one day before the record date and the stocks becoming ex-rights means they are trading without the value of the upcoming rights issue. In order to be eligible for rights issued on the record date taking into account T+2 settlement in India, you must buy the shares at least one working day prior to the ex-date in order to be on the record book of the company which is considered to check the eligibility of the shareholders to get rights issued.
Mercury Metals Limited
The Board of the company has said in a regulatory filing that “RIGHTS ISSUE OF 15,99,14,584* (FIFTEEN CRORE NINETY NINE LAKHS FOURTEEN THOUSAND FIVE EIGHTY FOUR) FULLY PAID-UP EQUITY SHARES OF FACE VALUE OF ₹1/- (RUPEE ONE ONLY) (‘RIGHTS EQUITY SHARES’) EACH OF THE COMPANY FOR CASH AT A PRICE OF ₹3/- (RUPEES THREE ONLY) PER RIGHT SHARE (INCLUDING A PREMIUM OF ₹2/- (RUPEES TWO ONLY) PER RIGHT EQUITY SHARE) (‘ISSUE PRICE’) (‘RIGHT SHARES’) FOR AN AMOUNT UP TO ₹4797.44 LAKHS ON A RIGHTS ISSUE BASIS TO THE ELIGIBLE SHAREHOLDERS OF MERCURY METALS LIMITED (‘COMPANY’ OR ‘ISSUER’) IN THE RATIO OF 23 (TWENTY THREE) RIGHT SHARES FOR EVERY 1 (ONE) EQUITY SHARE HELD BY SUCH ELIGIBLE SHAREHOLDERS AS ON THE RECORD DATE, THURSDAY, AUGUST 4, 2022, (‘ISSUE’). THE ISSUE PRICE IS 3 (THREE) TIMES THE FACE VALUE OF THE EQUITY SHARE."
The stock has produced a multibagger return of 346.49 per cent over the last year, and so far in 2022, it has generated a multibagger return of 247.06 per cent. The stock has produced a multibagger return of 116.23 per cent over the past month and a multibagger return of 231.73 per cent over the past six months. The stock is presently trading at Rs. 8.26 per share on the market.
KCL Infra Project Limited
“The Board of Directors of the Company (“Board") dated March 7th, 2022, where the issue of equity shares of the Company of face value of Rs. 2 (Rupee Two Only) each (‘Equity Shares’) was approved by way of a rights issue for an aggregate amount not exceeding Rs. 48 Crores/- (Rupees Forty-Eight Crores Only) (“Rights Issue"), in accordance with the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015, and the Companies Act, 2013 and the rules made thereunder, as amended from time to time, (‘Rights Issue’)," the company has said in a regulatory filing.
Here are the details of rights issue of KCL Infra as per the data available on exchange filings
Total number of securities proposed to be issued: Up to 23,69,79,000 Equity Shares of face value of Rs. 2/- each for an amount aggregating up to Rs. 47,39,58,000.
Issue Price: Rs. 2/- per Equity Shares. Rs. 0.50/- per Equity Shares to be paid on application and remaining Rs. 1.50/- per Equity Shares on call.
Record Date: Friday, 5 August, 2022 for the purpose of | determining the shareholders entitled for Rights Issue (“Eligible Equity Shareholders"’).
Right Issue Period: Right Issue Opening Date- Monday, 22 August 2022, Last Date for on Market Renunciation of Rights Entitlement- Wednesday, 31 August, 2022, Right Issue Closing Date- Monday, 05 September, 2022.
Right entitlement Ratio: 9 (Nine) Equity Shares for every 1 (One) Equity Shares held by the Eligible Equity Shareholders of the Company as on the record date with the right to renounce.
Outstanding Equity Shares prior to the Rights Issue: 2,63,31,000 Equity shares of Rs. 2/- each.
Outstanding Equity Shares post Right Issue (assuming full subscription): 26,33,10,000 Equity shares of Rs. 2/- each.
The company has said in BSE exchange filing that “In relation to the aforesaid Rights Issue and in accordance with Regulations 42 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, as amended and Regulation 68 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Board of Directors at its meeting held today has fixed Friday, 5 August, 2022 as the record date for the purpose of determining the equity shareholders who shall be entitled to receive the Rights Entitlement in the Rights Issue."
The stock has given a multibagger return of 299.01 per cent over the past five years, but it has witnessed a drop of -3.82 per cent during the past year. The stock has gained by 41.40 per cent YTD so far in 2022, and it has climbed by 38.49 per cent for the past six months. In the last month, the stock has gained by 21.75 per cent, and in the most recent five trading days, it has gained by 21.02 per cent. The stock’s last closing price was ₹4.03.
