Shares of Advik Capital, a penny stock, rose nearly 10% on Monday, October 7, even though the overall stock market was down. The stock price increased by 9.8% to ₹3.02 during the day, while the main stock indices dropped over 1% for the sixth day in a row. Advik Capital’s stock is still 26% below its 52-week high of ₹4.10, reached in January, but it has gone up by 56% from its 52-week low of ₹1.94 in October last year.
Over the last year, the stock has gained 17%, and in 2024 so far, it has risen by 44%. In October alone, it has already jumped 8%, while the broader market has lost nearly 4%.
Rights Issue Extended
Advik Capital recently extended the closing date of its rights issue, which was originally set to close on October 4, to October 10. In a regulatory announcement, the company said it extended the deadline to give shareholders more time to participate. The new deadline for submitting applications is now October 10, 2024. Other details, such as the terms of the offer and application forms, remain the same, except for the new closing date.
Rights Issue Details
The board of Advik Capital had approved this rights issue on September 7, 2024. The company plans to issue 19.98 crore fully paid-up equity shares, each with a face value of Re 1, to raise ₹4,995.13 lakh if fully subscribed. The shares are being offered at ₹2.50 per share, which includes a premium of ₹1.50 per share, allowing eligible shareholders to buy additional shares at a discounted price. Shareholders can buy 14 new shares for every 30 shares they already own. The record date to decide eligibility for the rights issue was September 12, 2024. After the rights issue is completed, Advik Capital will have 62.79 crore outstanding equity shares.
About Advik Capital
Advik Capital is a non-banking financial company (NBFC) registered with the Reserve Bank of India. It offers financial loans and other related services, including loans to industrial businesses, financing leasing operations, and investments in growing businesses and securities. The extension of the rights issue and the stock’s strong performance, despite a falling market, show that investors remain confident in the company’s future.
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