Gyscoal Alloys Ltd's rights issue oversubscribed

GYSCOAL ALLOYS LIMITED (GAL) had launched its Right Issue ("the Issue") of 17,41,03,116 fully Paid-Up Equity Shares of Face Value of ₹ 1 Each for Cash at a price of ₹2.75 each including securities premium of ₹1.75 per rights equity share, aggregating to 4787.84 lakhs on a rights basis to the existing Equity Shareholders of the Company as in the ratio of 110 Rights Equity Share(s) for every 100 fully Paid-up Equity Share(s) held by the existing equity shareholders on the Record date, that is on Friday, December 23, 2022.

The issue price for the Rights Equity Shares was ₹ 2.75 which is 2.75 times the face value of the equity shares.

The issue was listed on both the Stock Exchanges i.e. on Bombay Stock Exchanges (BSE) and National Stock Exchange (NSE). It was started on Monday, January 02, 2023 and closed on Thursday, January 12, 2023.

The issue got oversubscribed with overwhelming support from investors. The rights issue proceeds will be used for:

- Payment of the OTS settlement amount of Rs. 1750 lakhs
- Repayment or prepayment of unsecured loan of Rs. 1950 lakhs
- General Corporate purpose - Rs. 1027.84 lakhs
- Issue expenses - Rs. 60.00 lakhs

Post Rights Issue (assuming full subscription) Company's borrowing will reduce from Rs. 7909.34 lakhs (as on March 31, 2022) to Rs. 4209.34 lakhs (all these loans are interest free loan from related parties)

Net worth of the company will become positive Rs. 1641.82 lakhs.

Shares of Gyscoal Alloys Limited was last trading in BSE at Rs. 3.44 as compared to the previous close of Rs. 3.28. The total number of shares traded during the day was 1358113 in over 438 trades.

The stock hit an intraday high of Rs. 3.44 and intraday low of 3.15. The net turnover during the day was Rs. 4660698.00.

Source : Equity Bulls

Keywords

GyscoalAlloys INE482J01021 GAL FundRaising RightsIssue DebtReduction