North Eastern Carrying Corporation Announces Rights Issue; Check Price & Ratio

North Eastern Carrying Corporation has announced rights issue. According to an exchange filing by the freight forwarding company, it has announced 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 balance of Rs 9 payable on first and final call.

The ratio has been set at 9 equity shares for every 10 shares 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.
What is Rights Issue?

A rights issue is a kind of dividend. It is, however, different from the simple dividend payment. A rights issue or rights offer is a subscription rights that allows its existing shareholders to buy additional shares at a discounted rate.

When a publicly traded company needs funds, the company issues rights shares. Simply, it is a way for a public company to raise additional funds from the market to meet financial needs.

The company invites existing shareholders to purchase additional new shares at a discounted rate. It is an opportunity for shareholders to increase their exposure to the stock at a discount price.

North Eastern Carrying Corporation shares are on a downtrend for the last one year. The shares of logistics solution providers have corrected 20 per cent in the past 12 months. It has delivered a positive return of 37 per cent in the past two years.

On Wednesday, the shares of North Eastern Carrying Corporation opened on the BSE at Rs 18.90 compared to the previous close of Rs 18.94. The stock made a 52-week-high of Rs 28.52 on (18/08/2022) and a 52-week-low of Rs 13.20 on (20/03/2023). During Q4FY23, the company reported promoter shareholding of 52.68% and public stake of 47.33%.