Share of Va Tech Wabag rose over 7% today after the company allotted 50 lakh shares worth Rs 80 crore to Rekha Jhunjhunwala, wife of ace investor Rakesh Jhunjhunwala on a preferential basis. The stock touched an intraday high of Rs 204.65, a gain of 7.43% on BSE.
The stock has gained 2.68% in the last 2 days. The stock opened with a gain of 3.41% at Rs 197 against previous close of Rs 190.50. The share stands higher than 5 day, 50 day, 100 day and 200 day moving averages but lower than 20 day moving averages.
Later, the share closed 2.28% higher at Rs 194.85 on BSE. Market capitalisation of the firm rose to Rs 1,065 crore.
The company in its exchange filing said, "Board of directors approved the issue and allotment of 75 lakh equity shares of face value of Rs 2 each, for cash, at a price of Rs 160 per equity share aggregating to Rs 120 crore by way of preferential issue to four investors."
On August 25, the firm said it would issue up to 75 lakh equity shares on a preferential basis at a price of Rs 160 per share to raise Rs 120 crore from three investors.
The company would issue 50 lakh shares to Rekha Rakesh Jhunjhunwala for Rs 80 crore, 15 lakh shares to Basera Home Finance Private Limited for Rs 24 crore and 10 lakh shares jointly to Sushma Anand Jain and Anand Jaikumar Jain for Rs 16 crore.
On August 21, the share gained 20% intra day after the firm said its board would meet on August 25 to consider and approve raising of funds by way of issue of equity shares, on preferential basis.
Later, the share closed 19% higher at Rs 218 on BSE.