The committee of Mold-Tek Packaging Limited at its meeting held today i.e. October 17, 2020, has approved the terms and conditions of rights issue. The board of directors of the company had earlier at its meeting held on September 21, 2020, had approved the offer and issue of such number of equity shares being partly paidup along with detachable share warrants to the existing shareholders of the Company ("Eligible Equity Shareholders") as on
the record date on a rights issue basis for an aggregate amount not exceeding Rs. 9,000 Lakhs. The Board also constituted a committee to take all decisions and approve, negotiate, finalize and carry out all activities within its terms of reference and relating to the offer, issue, allotment of such number equity shares (fully paid-Up or partly paid-up), share warrants, other eligible securities, convertible securities or a combination of any of the aforementioned securities of the Company to the Eligible Equity Shareholders of the Company as on the record date.
Rights Issue Highlights:
Rights Issue Size - Rs. 7,130.44 Lakhs
Rights Issue Ratio - 1 Rights Equity Share along with 6 detachable warrants for every 50 fully paid-up Equity Shares held by the eligible shareholders of the Company.
Issue Price - Equity Share at Rs. 180 per share (Face Value - Rs. 5, Premium - Rs. 175), Warrants at Rs. 184 per warrant.
Terms of Payment - On application - Rs. 45 per Equity Share and Rs. 46 per Warrant. The balance to be paid on one or more calls.
Record Date - Thursday, 22nd October, 2020
Issue Opening Date - Oct 28, 2020
Issue Closing Date - Nov 11, 2020
Last date for on market renunciation - 6th November, 2020.
The issue comprises of 1 equity share of the Company being partly paid-up of face value Rs. 5 each ("Rights Equity Shares") for cash at a price of Rs. 180 per Rights Equity Share (including a premium of Rs. 175 per Rights Equity Share] ("Rights Equity Share Price") along with 6 detachable warrants ("Warrants") for cash at a price of Rs. 184 per Warrant ("Warrant Price") (Warrant Price together with the Rights Equity Share Price, the "Issue Price"), allotted in the Issue for every 50 fully paid-up equity shares held by the Eligible Shareholders, for an amount collectively not exceeding Rs. 7,130.44 Lakhs ("Issue Size") on a rights basis to the Eligible Equity Shareholders of the Company ("Issue").
The eligible equity shareholders shall be required to pay Rs. 45/- per Rights Equity Share and Rs. 46/- per Warrant, which constitutes 25% of the Issue Price (being 25% of Rights Equity Share Price and Warrant Price respectively) of Rights Securities (i.e. Rights Equity Shares and Warrants) on application and balance amount in one or more calls as may be determined by the Committee from time to time for Rights Equity Shares and Warrant holders upon exercising their option to subscribe to equity shares against Warrants. Provided that in respect of the Rights Equity Shares, the balance amount wi II be called not later than 12 months whereas in respect of Warrants, the balance amount per Warrant ("Warrants Exercise Price") will be paid not later than 18 months from the date of allotment.
The committee also fixed record date for the purpose of determining the shareholders who will be eligible to apply for the Issue as Thursday, 22nd October, 2020.
The issue opens on 28th October, 2020 and closes on 11th November, 2020. The last date for on market renunciation will be 6th November, 2020.
Shares of Mold-Tek Packaging Limited was last trading in BSE at Rs.270.85 as compared to the previous close of Rs. 270.95. The total number of shares traded during the day was 1325 in over 143 trades.
The stock hit an intraday high of Rs. 274.35 and intraday low of 268. The net turnover during the day was Rs. 357578.