My post was just to kind of say that there is no negative effect as a result of equity share capital increasing in this case, and less earnings growth of 47% as compared to PAT growth of 90% doesn’t actually make any difference. And also that equity dilution I thought may not be the right word to use in this case.
Rights dilute value of each share of the company (including promoter’s share) and hence existing shareholders are not losing out on earnings as they receive proportionate allocation of extra shares that are issued. Where as in something like e.g. of warrants given above the earnings in the hands of existing non-promoter shareholders is getting reduced.
Markets in anycase, as we all know definitely views frequent equity dilutions as negative.
Regards.
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