Penny stock under Rs 20; Board announces 9:10 rights issue!
The stock has witnessed a 38 per cent increase in 3 years and over 90 per cent growth in 5 years.
North Eastern Carrying Corporation Ltd has announced the rights issue for its eligible shareholders. According to an exchange filing by the freight forwarding company, has announced a rights issue of up to 4,51,77602 partly paid-up equity shares with a face value of Rs 10 each.
The rights issue price has been set at Rs 18 per share which includes a premium of Rs 8 per share, aggregating up to Rs 8,131.97 lakh payable on application Rs 9 and a balance of Rs 9 payable on first and final call. The ratio has been set at 9 equity shares for every 10 shares held by equity shareholders of Rs 10 face value each. The company didn't announce the record date for ascertaining the eligibility of shareholders for their participation in the rights issue.
Rights Issue: A rights issue is a way for a public company to raise additional funds from the market. It is similar to a dividend, but instead of paying shareholders cash, the company offers them the opportunity to buy new shares at a discounted price. This gives shareholders the opportunity to increase their exposure to the company's stock at a lower cost.
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On Wednesday, shares of North Eastern Carrying Corporation Ltd surged 0.69 per cent to Rs 19.07 per share with an intraday high of Rs 19.10 and an intraday low of Rs 18.90.
North Eastern Carrying Corporation Ltd primarily provides freight transportation services to bulk and retail customers, particularly in the Full Truckload (FTL) segment, along with other services like warehousing and packing. Talking about the financials, the company has a market cap of Rs 182 crore. The net sales increased by 22.40 per cent to Rs 306 crore and the net profit increased by 50 per cent to Rs 6 crore in FY23 over FY22.
The stock has witnessed a 38 per cent increase in 3 years and over 90 per cent growth in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.