Shares of Bajaj Finance Ltd hit a fresh 52-week high today but ceded some of the gains after the company came out with the rights issue price and the ratio of allotment.
The company said that its board had approved issue of 67,60,117 equity shares of Rs 10 each in the ratio of 3:19 (three shares for every 19 held) at a price of Rs 1,100 per share (including premium of Rs 1,090 per share), aggregating Rs 743.61 crore.
The company would also enter the distribution of mutual fund products.
In both the exchanges, the Bajaj Finance shares touched a fresh 52-week high but gave up some of the gains. On the BSE, the stock was trading at Rs 1,415, a gain of Rs 18.80. But had lost some ground after touching Rs 1,458.70, a new yearly high.
On the NSE, the stock was trading at Rs 1,411.45 but this was also lower than the 52 week high of Rs 1,458.40 it touched today. The volume of trading was a high 1.65 lakh shares. Apparently, the rights issue price and the ratio of allotment came as a surprise. But the stock has had a phenomenal run in the past one year, rising from a yearly low of Rs 640 to the current levels. Hence, the rights issue price still represents a significant discount to the current market price.