Advik Capital shares hit upper circuit as board approves rights issue

Shares of Advik Capital hit upper circuit during in Monday's trade after its company board approved the proposal of rights issue. The company board was scheduled to meet on Saturday, September 2 and the company informed about the board decision through an exchange filing. The company board of directors of Advik Capital has provided 'in-principal approval' for a proposed right issue of up to Rs 49.95 crore, the company said in the exchange filing. The rights issue consists of fully paid-up equity shares of the company, it said in the filing. "The company board has fixed the issue price Rs 2.4 per equity shares and the record date for the purpose of determining the shareholders entitled for rights issue has been fixed as Thursday, September 7, 2023," it added. The rights issue will open on September 18, Monday and will conclude on September 29, Friday. Last Date for on market renunciation of rights entitlement has been fixed as Tuesday, September 26. Following the announcement, shares of Advik Capital were locked in the upper circuit of 5 per cent to Rs 2.59 on Monday, compared to its close at Rs 2.47 on Friday. The stock has gained more than 32 per cent in the last three weeks, from its 52-week low at Rs 1.96 on August 14, 2023. The company board had approved the rights issue amounting to Rs 50 crore in a single tranche in April this year. Shareholders of the company approved the same in May 2023. The approval from the exchange (BSE) was received earlier this month. The company reported net sales at Rs 152.70 crore in June 2023 quarter, up 39 per cent on a year-on-year (YoY) basis from Rs. 109.51 crore in June 2022 quarter. The net profit stood at Rs 0.64 crore in the Q1FY24, down 33 per cent YoY, while EBITDA came in at Rs 2.66 crore, up 79 per cent on yearly basis. New Delhi-based Advik Capital, an RBI-registered non-banking finance company (NBFC), which is into business of investing funds, assisting the financial accommodation by way of loans/advances to industrial concerns and undertaking the business of leasing and to finance lease operations of all kinds, purchasing, selling, hiring or letting on hire or all kinds of plant and machinery.

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