Advik Capital shares rebound as board approves allotment of rights issue

Shares of Advik Capital rebounded from the early cuts on Thursday after the company finalized the basis of allotment of equity shares for its rights issue in consultation of BSE, merchant bankers and registrar to the issue. The company informed about the same through an exchange filing on Wednesday.

"The rights issue committee of the company approved the allotment of 20,79,60,320 fully paid-up rights equity shares with a face value of Re 1 each at a price of Rs. 2.40 per rights equity share," said the company in the exchange filing after its board meeting on Wednesday. The company has raised Rs 50 crore via this rights issue.

Shares of Advik Capital rebounded about 8 per cent from day's low at Rs 2.43 to rise 8 per cent to Rs 2.63 during the session. From its previous close at Rs 2.55 on Wednesday, the stock rose more than 4 per cent. However, the stock is down about 27 per cent in the year 2023 so far.

With this allotment, paid up capital of the Advik Capital stood increased to 42,81,53,600, the filing added. However, earlier Advik Capital had extended the timeline for its right issue in the light of market holidays. The company cited investors' inability in submitting ASBA Applications on banking holidays.

Due to bank holidays on the account of Eid on different dates in different cities, the rights issue committee of the company approved the extension of the Rights Issue of Advik Capital by one week, and revised the closure date to October 6, 2023 instead of the earlier scheduled closure date of September 29.

New Delhi-based Advik Capital is a RBI-registered NBFC, which is into business of investing funds, assisting the financial accommodation by way of loans 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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