“Preferential Issue” is a scenario where listed as well as unlisted companies raise funds by way of issuing equity shares or convertible securities to a select group of investors.
Listed below are two companies whose Board of Directors (BOD) approved fundraising by way of preferential issue:
Radhe Developers (India) Limited
With a market capitalization of Rs 220.07 crores, the stocks of Radhe Developers (India) Limited, engaged in the business of Real Estate Development, closed at Rs 4.37 on Monday, gaining approximately 0.70 percent as compared to the previous closing levels of Rs 4.34 apiece.
The company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated that the Board of Directors of the company has approved the fundraising plans via preferential issue.
The company’s Board approved the preferential issue of up to 2.01 crore equity shares of face value of Rs 1 each towards the conversion of unsecured loans to the extent of Rs 8.56 crores at an issue price of Rs. 4.25 per share.
The same is subject to the approval of the members in the General Meeting and other statutory and regulatory approvals wherever necessary and applicable.
Jhaveri Credits and Capital Limited
With a market capitalization of Rs 217.88 crores, the stocks of Jhaveri Credits and Capital Limited, engaged in the business of providing a broking platform for dealing of commodities in spot and futures markets, closed on Monday hitting the 2 percent upper circuit at Rs 337.10.
The company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated that the Board of Directors of the company has approved the fundraising plans via preferential issue.
The company’s Board approved the preferential issue of up to 25.29 lakh equity shares as well as the issue of five lakh warrants.
Written by Amit Madnani
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