The shares of Pacific Industries Ltd. zoomed 9.27% on Monday to reach an intraday high of ₹ 459.90 apiece. Its shares were trading at ₹ 449.00 apiece at 02:53 PM on Monday. Pacific Industries manufactures, processes and trades marble, granite and stone.
The company informed the exchanges that its board has approved the issuance of fully paid-up equity shares of the company for an amount aggregating up to ₹ 48 crores by way of a rights issue.
It said that it will issue up to 34,46,325 fully paid-up equity shares aggregating up to ₹ 47,90,39,175 (~₹ 47.90 crores). The issue price for the shares is ₹ 139.00 per share, including a premium of ₹ 129.00 per share and the record date for the issue is Wednesday, 11th January 2023. The issue will open on January 19, 2023, and close on February 02, 2023.
Eligible shareholders as of the record date are entitled to one fully paid-up equity share for every one share that they hold, i.e., a ratio of 1:1. Assuming full subscription, the number of shares prior to the issue will be 34,46,325, while the number of shares after the issue will be 68,92,650.
The company has a market capitalization of ₹ 145.00 crores and is a micro-cap company. It has an ideal debt-to-equity ratio of 0.20, but a poor return on equity of 4.43%. Its shares are trading at a price-to-earnings ratio of 23.94, which is lower than the industry average of 28.40. This indicates that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
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