they (promoter) of course applied to rights- otherwise their shareholding would have reduced by huge margin.
rights issue was nominal at Rs. 10 or something, when share price was in thousands.
Post rights issue-
the shareholding of promoters increased from 73.23% to 74.37%
1.2% were free of cost shares– snatched from sleeping/inactive retail shareholders– who didn’t apply to rights shares.
they got these shares for FREE. as rights issue was at Rs. 10 only, while actual share was at Rs. 2000 or something near it.
The sleeping shareholders- who didn’t apply for rights issue- saw huge wealth erosion.
It is understandable not 100% of retail shareholders are active in markets.
Many are senior citizens and check their portfolio once in a year.
The purpose of rights issue was only to snatch their shareholding- and increase promoter shareholding.
Please check price of rights issue, price of sandur stock (before split/bonus), amount raised from rights issue.
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