Rights Issue at 99 per cent discount: This Small-cap stock offers rights issue in 1:1 ratio, know the record date!

In the last couple of trading sessions, the stock has seen significant rise in the deliver quantity.

Heritage Foods is engaged in the business of procurement and processing of Milk & Milk products and also generation of power through solar & wind for the captive consumption of its diary plants. The company today serves more than 15 lakh households daily.   

The stock could see some excitement as it is nearing to the record date of the right issue. The record date for the right issue of equity shares in the ratio of 1:1 is fixed at January 20, 2023.   

What’s intriguing is the fact that the current market price of the stock on NSE exchange is Rs 367 and the company has offered rights issue at a price of Rs 5 per share for an amount aggregating to Rs. 2319.90 lakh. So, that means the rights issue will be at a discount of nearly 99 per cent to its current market price of Rs 367! You might think this might be a typo error or dream, but pinch yourself, it is for true that the company is offering rights issue at a steep discount.   

The Rights issue opening date is January 30, 2023. Last Date for On-Market Renunciation of Rights Entitlements: February 08, 2023. Rights Issue Closing Date: February 13, 2023.   

In the last couple of trading sessions, the stock has seen significant rise in the deliver quantity. For January 16, the stock has seen 1.95 lakh shares in delivery, while on January 17, the stock witnessed delivery of 1.16 lakh shares. Percentage of delivery quantity to traded quantity stands at 62.50 and 60.53 per cent, respectively.  

Would you opt for the rights issue or not, let us know in the comment section.