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Home / Markets / Stock Markets /  Upcoming stock actions: 1 stock split & 1 rights issue to watch ahead in August
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Common corporate actions include bonus shares, dividends, stock splits, and rights issues. These actions commonly have an influence on the stock prices and should be grasped by investors before occurrence. Two instances of upcoming corporate events to keep an eye on in August are the shares of Coastal Corporation Ltd. and PDS Ltd. PDS announced a stock split, for which the company's board of directors established a record date. The record date for the rights issue declared by Coastal Corporation Ltd. should be known by the shareholders.

PDS Ltd

On 1st August, the Board of Directors of PDS Ltd said in a regulatory filing that “The Company has fixed Monday, August 29, 2022 as the Record Date for determining the eligibility of Shareholders for sub-division /split of Equity Shares of 1 (One) Equity Share having Face Value of 10/‐ each into 5 (Five) Equity Shares having Face Value of 2/‐ each, pursuant to Regulation 42 of SEBI Listing Regulations."

The shares of PDS Limited closed on Friday at 1,750.00 apiece, up by 2.69% from the previous close of 1704.10. The stock has gained 3.78% year-to-date (YTD) so far in 2022. On Friday a total volume of 4,418 shares had traded compared to the 20-day average trade volume of 4,459 shares.

Coastal Corporation Ltd

The company has said in a regulatory filing that “This is further to our intimation dated July 31, 2022, the Board of Directors of the Company, at their meeting held today, inter alia have, Approved the issue of 19,29,800 Partly Paid-up Equity Shares of face value of Rs. 10/- each at an issue price of Rs. 225/- per Equity Share (including a premium of Rs. 215/- per Equity Share) aggregating to Rs. 4,342.05 Lakhs to all the existing equity shareholders of the Company on a rights basis ("Rights Issue")."

Details of rights issue of Coastal Corporation Ltd according to stock exchange filings

Instrument: Partly paid-up Equity Shares (Rs.2.50/- paid up per Equity Share) of face value of Rs. 10 each.

Total number of Partly paid-up Equity Shares and Rights Issue size: 19,29,800 Partly paid-up Equity Shares of Rs. 10/- each aggregating to an amount of Rs. 4,342.05 Lakhs in total. Considering the amount payable on Application (Rs. 56.25/- per Equity Share) the Rights Issue amount on Partly Paid Shares, assuming full subscription will be Rs. 10,85,51,250/-.

Right entitlement ratio: 1 (One) Equity Share for every 6 (Six) Fully Paid Equity Shares held by the Existing Shareholders on the Record Date.

Rights Issue Price: Rs. 225/- per Rights Equity Share (including a premium of Rs. 215/- per Rights Equity Share). An amount of Rs. 56.25 per Rights Equity Share (including a premium of Rs. 53.75/- per Rights Equity Share) to be paid on Application and balance to be paid in two calls as determined by our Board at its sole discretion from time to time.

Record date: August 26, 2022 for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the Rights Issue (“Eligible Equity Shareholders").

Rights Issue period: Rights Issue Opening Date: September 12, 2022, Rights Issue Closing Date: September 27, 2022.

The shares of Coastal Corporation Ltd 345.00 apiece, up by 3.15% from the previous close of 334.45. The stock has gained 16.46% in the last 1 year and on a YTD basis, the stock has gained 4.96% so far in 2022.

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