Was trying to calculate what could be the rights issue ratio and resultant EPS dilution. Pls suggest if this is the right approach:
4200Cr to be raised by rights issue Current marketcap around 43K; assuming around 10% discount to CMP; rights issue to be at around 540
4200/540 = 7.5Cr shares will be issued
Currently 150Cr Equity capital comprises of shares with Face Value of 2; that means currently 75Cr shares issued. with 7.5Cr more shares to be issued; equity base rising 10%; EPS should dilute by 9%.
I believe the underlying business is not yet out of the doldrums, the stock may ultimately reach the rights issue price in the coming quarter…
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