Deccan Gold Mines Ltd revises rights issue price

The Board of Directors of Deccan Gold Mines Ltd at its meeting held on August 22, 2015, have revised the Issue Price to Rs. 17/- per share (including nominal value of Re. 1/-per share and premium of Rs. 16/- per share) of the proposed Rights Issue. It may be noted that the Company had earlier announced a Rights Issue in the ratio of 1 rights share for every 2 shares held as on the Record Date at an Issue Price of Rs. 15/- per share (including nominal value of Re. 1/- per share and premium of Rs. 14/- per share). The present paid-up capital of the Company is 59,218,250 equity shares and accordingly 29,609,125 equity shares are proposed to be issued on Rights Basis.

Due to the revision in issue price, the issue size will get revised from INR 444.14 million (29,609,125 equity shares @ Rs. 15/-) to INR 503.36 million (29,609,125 equity shares @ Rs. 17/-) - an increase of INR 59.22 million. The additional funds are sought to be utilized by the Company for general corporate purpose and investment in subsidiary to establish a presence in Australia to facilitate the recruitment of technical personnel and access to other mining resources for development of our gold projects.

Shares of DECCAN GOLD MINES LTD. was last trading in BSE at Rs.76.7 as compared to the previous close of Rs. 71.8. The total number of shares traded during the day was 390506 in over 2390 trades.

The stock hit an intraday high of Rs. 78.95 and intraday low of 67.75. The net turnover during the day was Rs. 29404773.

Source : Equity Bulls

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