Textile stock is 49% below 52-week-high, ex-date for 1:14 rights issue next week

The company has said in a stock exchange filing that its Board of Directors has approved “The issue of 6,14,680 Equity Shares of face value of ₹10/- each at an issue price of ₹569/- per Equity Share (including premium of ₹559/- per Equity Share) for an amount aggregating up to ₹3,497.53 lakhs to all the existing equity shareholders of the Company on a rights basis (“Rights Issue”). Friday, December 30, 2022 as the record date for the purpose of determining names of shareholders of the Company eligible to apply for the Equity Shares in the Rights Issue of the Company (“Record Date”).”

They further added that “In accordance with Regulation 42 of the SEBI LODR Regulations read with Regulation 68 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Company has fixed Friday, December 30, 2022, as the record date for the purpose of determining names of the shareholders of the Company eligible to apply for the Equity Shares in the Rights Issue of the Company.”

The shares of Rajapalayam Mills Ltd closed on Friday at ₹706.35 on the BSE, down by 2.59% from the previous close of ₹725.15. The stock recorded a total volume of 4,425 shares compared to the 20-Day average volume of 4,343 shares. The stock has lost 51.25% over the past five years, and 26.31% during the past year. It has dropped 31.83% YTD so far in 2022. The stock had touched a 52-week-high of ₹1,398.00 on (17/01/2022) and a 52-week-low of ₹700.00 on (23/06/2022), indicating that at the current market price the stock is trading 0.90% above 1 year low and 49.47% below the 1 year high. For the quarter ended September or Q2FY23, the company posted a promoter shareholding of 55.12% and a public stake of 44.88%.