Coastal Corporation's stock surges ~5% as board nods Rs50 crore rights issue

30 Mar 2022 , 10:49 AM

Coastal Corporation’s scrip added about 5% so far in today’s trade as the company informed investors of approval of a fundraising plan worth Rs50 crore by way of rights issue.

The company stated that the board of directors has approved fundraising of an amount not exceeding Rs50 crore through a rights issue to the eligible equity shareholders of the Company as on record date in accordance with applicable laws.

The company will constitute the rights issue committee to proceed with the rights issue and decide other terms of the right issue.

In the same meeting, the company has also approved giving corporate guarantee/loans/investments not exceeding an amount of Rs45 crore for M/s. Continental Fisheries India Limited, a Wholly Owned Subsidiary of the Company.

The board also extended approval to give corporate guarantee/loans/investments not exceeding an amount of Rs175 crores for M/s. Coastal Biotech Private Limited, a Wholly Owned Subsidiary of the Company (Ethanol Project).

Coastal Corporation is currently trading at Rs359.75 up by Rs17.05 or 4.98% from its previous closing of Rs342.70 on the BSE. The scrip opened at Rs360.15 and hit intrady high of Rs362.35 and intraday low of Rs353.50.