Home / Markets / Stock Markets /  This FMCG stock surges 9% in trade today as Board declares 1:1 rights issue

Heritage Foods Ltd., an FMCG firm with a market valuation of Rs. 1,558.04 crores, is a small-cap company. Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh all have markets for Heritage's milk and milk-related goods. Heritage is one of the top manufacturers of milk and dairy products, as well as also engaged in renewable energy projects.

The company has said today in a regulatory filing that “In Continuation of our letter dated September 21, 2022, the Board of Directors of the Company at their meeting held on today i.e. September 30, 2022 approved the following items: Rights Issue: To Issue equity shares in the ratio of 1:1 by way of Rights Issue basis at the face value of Rs.5/- each per equity shares to the existing shareholders of the Company as on the record date (to be notified later). Further the Board has constituted and authorized ‘Rights Issue Committee’ to decide detailed terms and conditions of the Issue, including but not limiting to deciding the payment modalities/schedule thereof, record date, timings, other terms and conditions and all other related matters etc. The promoter and promoter group of the company may subscribe to all the unsubscribed shares in the issue, if any."

Rights issue details of Heritage Foods as per the data available on stock exchange filings

Type of Securities proposed to be issued: Equity shares of face value of INR 5/- each.

Total number of securities proposed to be issued: 4,63,98,000

Rights Issue Size: INR 23,19,90,000 (Twenty Three Crores Nineteen Lakhs and Ninety Thousand only).

Rights Issue Price: Rs.5/- (Rupees five only) per rights equity share.

Rights Entitlement Ratio: 1 new fully paid equity share for every 1 fully paid equity share (1:1) held by eligible shareholders as on the record date.

No. of Outstanding equity shares prior to the rights issue: 4,63,98,000

No. of Outstanding equity shares post rights issue (assuming full subscription): 9,27,96,000

On the NSE the shares of Heritage Foods closed today at 340.00 apiece, up by 9.24% from the previous close of 311.25. In trade today the stock recorded a total volume of 3,333,391 shares compared to the 20-Day average volume of 135,208 shares. On a YTD basis, the stock has fallen 18.24% so far in 2022. On the NSE, the stock had touched a 52-week-high of 565.00 on (28-October-2021) and a 52-week-low of 250.00 on (20-June-2022), indicating that at the current market price the stock is trading 39.82% below the high and 36% above the low. For the quarter ended June 2022, the company recorded a promoter shareholding of 39.43%, FIIs holding of 2.04% (up by 0.42% QoQ), DIIs holding of 14.65 (down by 1.24% QoQ), and public shareholding of 43.89% (up by 0.83% QoQ).

 

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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