Rights issues 2024: Markobenz, Spectrum Foods shares to trade ex-rights today

The Board of Directors of the 2 companies have declared rights issue of equity shares for their eligible shareholders.

The 2 companies have fixed March 27, 2024 as the record date for the purpose of determining the eligibility of equity shareholders to receive the rights entitlement in the rights issue.

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Markobenz Ventures rights issue 2024

The Board of Directors of the company declared issuance of the equity shares of face value of ₹ 10/- each for an amount not exceeding ₹ 15 crore by way of rights issue to the eligible equity shareholders.

According to Markobenz Ventures’ stock exchange filing, the rights issue size is “1,50,00,000 Fully Paid-up Equity Shares of ₹10/- each aggregating to an amount of ₹15,00,00,000 in total” and the rights issue price has been fixed at ₹10/- per rights equity share (including a premium of ₹0/- per rights equity share). The amount of Rs10/- per rights equity share (including premium of ₹0) to be paid on application.

Spectrum Foods rights issue 2024

The Board of Directors approved the issue of equity shares of face value of ₹10 each by way of a rights issue to the eligible shareholders.

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In a stock exchange filing, Spectrum Foods said: “Approved the issue of 1,93,93,544 Partly Paid-up Equity Shares of face value of Rs. 10/- each at an issue price of Rs. 20/- per Equity Share (including a premium of Rs. 10/- per Equity Share) aggregating to Rs. 38,78,70,880 to all the existing equity shareholders of the Company on a rights basis (“Rights Issue”).”

Shares of Markobenz Ventures Ltd and Spectrum Foods Ltd will trade ex-rights on Wednesday.

What is the rights issue of equity shares?

Companies declare rights issues to raise additional funds.

In the rights issue, companies grant existing shareholders the right, but not the obligation, to buy new shares at a discount to the current trading price. This type of issue gives existing shareholders securities called rights. 

The companies give shareholders a chance to increase their exposure to the stock at a discount price.

In a rights issue, because more shares are issued to the market, the price of the stock is diluted and will likely go down.

Until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way that they would trade ordinary shares.

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Published: 27 Mar 2024, 06:34 AM IST