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NCC Ltd, which is raising close to Rs 600 crore through its rights issue, has pegged the issue price at a steep discount to the prevailing market price of the scrip (face value Rs 2).
However, the company has said that the record date and issue opening date will be announced later.
In a communication to the stock exchanges, the company said the size of its rights issue would be Rs 598.70 crore. The ratio of allotment would be 7:6 (seven shares on rights basis for every six shares held). The issue would be offered at Rs 20 per share (including a share premium of Rs 18 per share).
NCC Ltd said that all fractional entitlements would be ignored for computation of rights entitlement. But those eligible shareholders, whose fractional entitlements were ignored, would be given preference in allotment of one additional share each, if they had applied for the same.
The rights issue has been priced at a significant discount to the market price of the stock. The stock had closed at Rs 68.85 last week. But when the market opened this morning, there was good buying interest in the counter with the stock jumping by Rs 2.55 to Rs 71.40 on the NSE with about 65,000 shares being traded within minutes of opening of trading.
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