Small-cap stock that doubled shareholders' money in 6 months defers rights issue citing technical reasons

Small-cap stock: Krishival Foods announced on October 28 that the board has decided to defer the rights issue due to technical issues, which is expected to be resolved in a month.

“The Board of Directors of the Company (“Board”), have deemed it prudent and in the best interest of the Company to defer the Rights Issue due to certain technical issues, which is expected to be resolved within a month,” the company said in an exchange filing.

The company further announced that the board has approved the increase in authorised share capital of the company from existing ₹24,50,00,000 of ₹10 per share to ₹30,00,00,000.

“Approved in increase in the authorized share capital of the Company from the existing Rs. 24,50,00,000/- (Rupees Twenty-Four Crores and Fifty Lakhs only) divided into 2,45,00,000 (Two Crore Forty-Five Lakhs) equity shares of Rs. 10/- (Rupees Ten) each to Rs. 30,00,00,000/- (Rupees Thirty Crores Only) divided into 3,00,00,000 (Three Crores) equity shares of Rs. 10/- (Rupees Ten) each and consequent amendment of Capital existing clause V of Memorandum of Association relating to share capital of the Company, subject to the approval of the Members in the ensuing Extra- Ordinary General Meeting,” it added.

Krishival Foods rights issue details

In an exchange filing on Monday, Krishival Foods said that its board of directors has approved a plan to raise funds through a rights issue of partly paid-up equity shares.

As per the filing, the company will issue partly paid-up equity shares with a face value of ₹10 each, for a total amount not exceeding ₹100 crore.

"Board approved the fundraising by way of offer and issuance of partly paid-up equity shares of the company of face value of ₹10 each for an amount not exceeding ₹10,000 lakhs by way of a rights issue to the eligible equity shareholders of the company,” the company said in the filing.

The company further stated that the rights issue committee will determine the specific terms and conditions of the rights issue.

On Wednesday, the small-cap stock was marginally up by 0.49 per cent to ₹493.35. Krishival Foods share price has given whopping returns of 106 per cent in just six months and 393 per cent in five years.

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