Jyoti Structures approves ₹175 Crore rights issue

20 Mar 2024 , 09:20 PM

On March 20, Jyoti Structures’ board authorised issuing fully paid-up equity shares with a face value of ₹2 a piece to raise ₹175 Crore through a rights issue, according to an exchange filing.

The business has set the rights issue price at ₹15 per equity share, with a premium of ₹13. The rights issue price is 37.5% lower than Tuesday’s closing price for Jyoti Structures shares.

The record date for the rights issue has been set at March 21, 2024. This implies that shareholders who acquire Jyoti Structures shares after the specified date will be ineligible to participate in the rights issue.

A rights issue involves a company raising funds by offering additional shares to its existing shareholders. Those who do not possess shares of the company on the specified record date are ineligible to take part in the rights offering.

The rights issue period is expected to begin on March 28, 2024, and end on April 10, 2024.

A number of corporations, including Grasim, South Indian Bank, and Indiabulls Housing Finance, recently issued and completed their separate rights offerings.

Transmission line towers, microwave towers, windmill towers, railway electrification and substation structures are among the products manufactured by the firm. JSL also fabricates and galvanises torque boxes, cantilever arms, pylons, and HCE supports for concentrated solar power plants.

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