This FMCG stock surges 9% in trade today as Board declares 1:1 rights issue
2 min read 30 Sep 2022, 04:40 PM ISTHeritage Foods Ltd., an FMCG firm with a market valuation of Rs. 1,558.04 crores, is a small-cap company.
PremiumHeritage 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).
