Small-cap firm Quint Digital Media Ltd (QDML) operates in consumer discretionary goods and services (CDGS). The company is listed on the Bombay Stock Exchange (BSE) and is the operator of ‘The Quint’.
The company in an exchange filing informed that its board of directors have approved an issue of equity shares by way of a rights issue to the existing shareholders of the company, for an amount not exceeding ₹ 125 crores. The board has fixed Thursday, December 22, 2022, as the record date for the issue, for determining the equity shareholders entitled to receive rights entitlements in the issue.
The company will be issuing fully paid-up equity shares of the face value of ₹ 10 each. It will issue up to 2.5 crore shares at an issue price of ₹ 50 aggregating up to ₹ 125 crores. The issue will open on January 09, 2023, and close on January 24, 2023. It will issue 42 rights equity shares for every 37 fully paid-up equity shares held by eligible shareholders of the company as of the record date.
Fractional shares might arise if shareholders hold less than 37 shares or if their shares are not in multiples of 37. According to the exchange filing, such shares shall be ignored for the computation of the entitlement of rights. However, such shareholders will be given preference in the allotment of one additional equity share each, if such shareholders have applied for additional equity shares over and above their rights entitlement.
QDML reported total revenue from operations of ₹ 19.73 crores for the July-September quarter (Q2FY23) on a consolidated basis, up by 37% YoY from ₹14.39 crore reported in the corresponding quarter last year (Q2FY22). Quint Digital Media’s net loss was ₹ 3.18 crore in Q2FY23 as opposed to ₹ 4.55 crore in Q2FY22.
The company has delivered multibagger returns of 1788.29% in the past five years as its share price increased from ₹ 18.80 to ₹ 355.00. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 18.88 lakh today!
Quint Digital Media’s shares were trading at ₹ 355.00 apiece at 11:44 AM on Friday. The company is a small-cap company with a market capitalization of ₹ 789 crores. It has a negative return on equity of 36.56%, however, it has an ideal debt-to-equity ratio of 0.82.
Written by Simran Bafna
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