CanFin Homes has priced its proposed rights issue at Rs 450 per share, a discount to the current market price.
The board of directors of CanFin Homes on Monday approved the rights issue pricing that includes a premium of Rs 440 for the face value of Rs 10 each. Shareholders will get three equity shares for every 10 shares held as on record date.
CanFin Homes will issue 61,45,575 shares as part the rights issue and expects to mop up about Rs 270 crore.
The CanFin Homes scrip, which hit a yearly high of Rs 695 in the intra-day trade on Monday, fell sharply to Rs 617 on the outcome of the board meeting and recovered later to trade at around Rs 628.25.
In a note to the stock exchanges, CanFin Homes said that for equity shares being offered on a rights basis under this issue, if the shareholding of any of the eligible equity shareholders was less than 10 equity shares or not in the multiple of 10, the fractional entitlement of such eligible equity shareholders shall be ignored.
The eligible equity shareholders, whose fractional entitlements are being ignored, would be given preferential consideration for the allotment of one additional equity share each if they apply for additional equity shares over and above their rights entitlement, if any, CanFin Homes said.
Those eligible equity shareholders holding less than 10 equity shares will therefore be entitled to zero equity shares under this issue and shall be despatched a composite application form (CAF) with zero entitlement. Such eligible equity shareholders are entitled to apply for additional equity shares.