Multibagger stock declares 1:5 rights issue, record date falling next week

The company has said in a stock exchange filing that its Board of Directors has “considered and approved inter alia the following terms of the Rights Issue:

1. Rights Issue Size and Price: Approved the issue of 8,67,189 equity shares of face value of Rs. 10 each, for an aggregate amount not exceeding Rs. 607.03 lakhs

2. Rights Entitlement Ratio: 1 (One) Right Equity Shares for every 5 (five) Existing Equity Shares held by the eligible shareholders as on the record date.

3. Fractional Entitlement: The Rights Equity Shares are being offered on a rights basis to existing Eligible Equity Shareholders in the ratio of One (1) Rights Equity Shares for every Five (5) Equity Shares held as on the Record Date. As per SEBI Rights Issue Circular, the fractional entitlement are to be ignored.

4′ Rights Issue Price: Rs. 701 Per Equity Share, including a premium of Rs. 60/- per Equity Share.

5. Terms of Payment: The full amount is payable on application.

6. Record Date: Friday, November 25, 2022 for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the Rights Issue (‘Eligible Equity Shareholders’,).”

On October 25, 2022, Roni Households Ltd.’s shares last closed at Rs. 109.00 per share. The stock has produced a multibagger return of 443.64% over the past five years and a multibagger return of 263.33% over the past three years. The stock has appreciated 6.86% during the past 12 months. The stock had touched a 52-week-high of ₹112.50 on (07/09/2022) and a 52-week-low of ₹79.00 on (27/10/2021). For the quarter ended September or Q2FY23, the company recorded a promoter shareholding of 59.66% and a public stake of 40.33%.