Heritage Foods rises as board issues equity in 1:1 ratio via rights issue

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oi-Jalaj Jain

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Heritage Foods Ltd is a small-cap company with over Rs. 1,605 crore in market capitalization. The Company is mainly engaged in the business of dairy and milk processing and supply. He is also responsible for the production of wind and solar energy for the consumption of the captive solar power plant for the dairy plants.

The stock price has surged higher in recent weeks after a sharp drop; however, in today’s trading session, the stock saw a huge surge in volume and gained more than 10%. The stock is trending in the news as company officials recently announced a share offering in a 1:1 ratio via rights issue for existing shareholders.

Officials approved the rights issue decision at the September 30, 2022 board meeting. Issuing the shares via the rights issue means that shareholders will get one additional share in this case; if a shareholder holds 100 shares, he will get more than 100 shares but at a value lower than the current market price.

In the most recent announcement on a rights issue on the Bombay Stock Exchange, the company mentioned, “To issue shares at a ratio of 1:1 by means of a rights issue at the par value of Rs. 5/- each per share to existing shareholders of the Company on the record date (to be notified later).

In addition, the Board of Directors has constituted and authorized the “Rights Issuance Committee” to decide on the detailed terms and conditions of the issue, including, but not limited to, deciding on the terms of payment/ the timetable thereof, the date of recording, deadlines, other terms and conditions and all other related terms. business etc.

The promoter and the promoter group of the Company may subscribe for all unsubscribed shares of the Issue, if any.”

Article first published: Friday, September 30, 2022, 12:15 p.m. [IST]

Sallie R. Loera