The Reserve Bank of India (RBI) registered non-banking financial company (NBFC) Advik Capital has finalised the allotment of rights issue. Earlier, it had announced plans to raise Rs 49.91 crore through a rights issue.
The Rights Issue Committee has approved the allotment of 20,79,60,320 fully paid-up rights equity shares of face value of Re 1 each at a price of Rs 2.40 apiece. With this allotment, the paid-up capital stand increased to Rs 42,81,53,600.
The rights issue opened on September 18 and concluded on September 29. The record date was September 7.
Based out of New Delhi, Advik is in the business of investing funds and offering loans. NBFCs are regulated by the RBI.
NBFCs have emerged as catalysts of economic growth, transforming and empowering small and medium enterprises, accounting for more than 35 per cent of GDP and a major chunk of employment. They serve as vital sources of funds for investments and infrastructure projects, contributing significantly to the nation’s development.
What is a rights issue?
A rights issue is a kind of corporate event through which a company raises additional funds from its existing shareholders. When a company announces a rights issue, then it invites its existing shareholders to buy fresh equity shares.
This type of issue (equity shares) for existing shareholders is called rights. Basically, it grants rights to the shareholders to buy new equity shares of the company at a discount in future. It is a way for a company to raise additional funds from its existing shareholders and also an opportunity for shareholders to increase their exposure to the stock at a discount price.
