Vardhman Special at new high
Vardhman Special Steels, which had closed at Rs.119.10 yesterday, went on to hit a new record high today at Rs.141.95. The stock has come off the high but remains 14.5% up at Rs.136 levels.
The company which makes special and alloy steels, announced yesterday late in the evening that it has fixed 10th April as the record date for ascertaining the eligible equity shareholders for the proposed rights issue of shares.
The shares are to be issued in the ratio 2:3 i.e. two equity shares for every three held. Total issue size is Rs 67.85 crore and issue price is Rs.50 per equity share.
Rights issue shares are usually offered at a discount to the market price; that is what makes it enticing for shareholders and it is a kind of compensation paid to the shareholders for dilution on their value due to addition of new shares.
Thus the stock price will not sustain at current levels after the rights but could settle down around Rs.102-105, which is lower than current price but surely a good increase over rights price.