You are here: Home » Markets » News
Business Standard

Muthoot Capital drops 2% on equity dilution worries

Sohini Sen  |  Mumbai 

Muthoot Capital has dropped 2% in noon trades following the board's approval of a rights issue.

The company board has approved a rights issue of 65 lakh equity share at Rs 80 a share, in the ratio of 1:1. However, the rights issue price of Rs 80 is in 19% discount to the current trading price of the share.

The stock opened at Rs 99 and slipped quickly to a low of Rs 96 - down 5% from the previous close. The stock is now down 2.3% at Rs 98.50. The counter has witnessed hefty trades of 11,253 shares so far as against a two-week average of 4,787 shares on the BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, July 06 2011. 12:19 IST