A rights issue is nothing but a corporate event wherein a listed company invites its existing shareholders to buy additional equity shares at a discount rate to the market price.
Stock Market News: Financial services major Toyam Sports has announced a fundraising plan to the tune of Rs 50 crore through issuing partly paid-up equity shares by way of rights issue. The company through an exchange filing said that the board will announce the record date in the due to course to determine the eligibility of shareholders for their participation in the rights issue.
A rights issue is nothing but a corporate event wherein a listed company invites its existing shareholders to buy additional equity shares at a discount rate to the market price. The time period for the rights issue is fixed by the board. As per the rule, existing shareholders do not have an obligation to take part in the rights issue to buy additional shares.
The filing added that the board has also approved the constitution of the Rights Issue Committee to proceed with the Rights issue and, inter-alia, decide the other terms and conditions of the rights Issue.
A listed company announces rights issue to raise funds from its existing shareholders to meet for various corporate purposes.
“Fund raising for an aggregate amount not exceeding Rs 50 crore through issuing partly paid-up equity shares by way of rights issue to the eligible equity shareholders as on record date,” it said in a filing, adding that the “record date will be notified subsequently within due course”.
Toyam Sports is listed on the BSE. The investment major focuses on sports marketing and management activities, as well as ventures into hospitality, healthcare and other sectors. Its shares have delivered a multibagger return of 107 per cent in the last two years, according to the BSE website.
