Geojit Financial Services approves rights issue at ₹50 per share
Geojit Financial Services Limited has moved forward with its previously announced capital-raising initiative through a Rights Issue, aimed at generating up to ₹20,000 lakhs. The Board of Directors first approved the Rights Issue in its meeting on July 13, 2024, to offer equity shares to eligible shareholders in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable laws.
Committee Meeting on September 19, 2024:
In a follow-up to the announcement made on September 16, 2024, the company’s Committee met on September 19, 2024, to finalize critical aspects of the Rights Issue. During the meeting, which commenced at 4:00 PM and concluded at 4:45 PM, the following key decisions were approved:
- Rights Issue Price: The issue price was set at ₹50 per equity share, which includes a premium of ₹49 over the face value of ₹1 per share. This discounted price offers existing shareholders an attractive opportunity to increase their stake in the company.
- Rights Entitlement Ratio: Shareholders will be entitled to subscribe to one equity share for every six equity shares held as of the record date. This ratio of 1:6 provides shareholders with a proportional opportunity to invest in the company’s growth.
Background of the Rights Issue:
This Rights Issue was initially approved during the Board meeting on July 13, 2024, and is a strategic move by GFSL to raise capital for various operational and expansion initiatives. The ₹20,000 lakhs raised will help the company enhance its digital infrastructure, expand its services, and support future growth plans. By offering shares at a discounted price, Geojit Financial Services is not only raising capital but also giving its existing shareholders the chance to participate in the company’s long-term success.
Key Details for Shareholders:
Eligible shareholders, as of the record date, will be entitled to buy additional shares at ₹50 per share under the 1:6 rights entitlement ratio. This Rights Issue presents an opportunity for shareholders to increase their equity holding in Geojit at a favorable price. Further communication regarding the record date and other relevant details will be made available by the company soon.