Kesoram Inds gains after board OKs terms of Rs 400-cr rights issue

Kesoram Industries rose 3% to Rs 85.95 after the company's board approved the terms of the issue of partly paid up equity shares by way of a rights issue, for an aggregate amount of up to Rs 400 crore.

In an exchange filing made during market hours today, the company said that the board has approved issuance of up to 7,99,99,665 rights equity shares, for an amount aggregating up to Rs 3,99,99,83,250 (assuming full subscription and payment of call monies).

The shareholders are entitled for 133 rights share for every 274 equity shares held. The record date for the same is fixed on Friday, 17 September 2021.

The issue will open on Monday, 27 September 2021, and will close on Monday, 11 October 2021.

In August 2021, Kesoram Industries announced an issue of rights offer to shareholders at Rs 50 per share for raising Rs 400 crore.

Kesoram Industries is engaged in the manufacture of cement, tyres, tubes, rayon, paper, heavy chemicals and spun pipes.

The company reported a consolidated net profit of Rs 12.77 crore in Q1 FY22 as against a net loss of Rs 15.95 crore in Q1 FY21. Sales rose 100.19% to Rs 855.40 crore in the quarter ended June 2021 as against Rs 427.29 crore during the previous quarter ended June 2020.

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