Sadhana Nitro Chem Ltd board approves rights issue at Rs. 121 per share

The Board of Directors of SADHANA NITRO CHEM LIMITED at their meeting held today i.e., Saturday, December 2, 2023, has, approved the fundraising by way of an issuance of equity shares of face value of 1/- each of the Company to its eligible equity shareholders, subject to receipt of necessary approvals from regulatory authorities, as applicable.

The rights issue price has been fixed as Rs. 121/- (Rupees One Hundred Twenty-One Only) (including a premium of Rs. 120/- (Rupees One Twenty Only) per Equity Share.

The aggregate size of the issue will not be exceeding Rs. 49.95 Crores (Rupees Forty-Nine Crore Ninety-Five Lakhs)

The rights issue serves the primary objective of financing the acquisition of a 126-acre plot of land. The funds would be predominantly used for land acquisition. This land will be strategically employed for the establishment of both a solar power facility and a wind energy installation. These sustainable energy sources will be harnessed to generate electricity, which, in turn, will be utilised for the production of green hydrogen via water electrolysis, all within the confines of the same property. Also, if there is any balance, then the same may be utilised for general corporate purpose and issue expenses.

The green hydrogen manufactured here will play a pivotal role as an integral component of our backward integration strategy, specifically tailored to support the Para Aminophenol Plant, as well as the Meta Aminophenol Plant and for other Hydrogenation products. Any surplus green hydrogen produced will be made available for sale to external parties, further enhancing our commitment to environmental sustainability and potential revenue generation.

The board also approved increase in Authorised Share Capital of the company from Rs 30,00,00,000 (Rupees Thirty Crores Only) divided into 30,00,00,000 (Thirty Crores only) equity shares of Re.1/- each to Rs. 60,00,00,000 (Rupees Sixty Crore Only) divided into 60,00,00,000 (Sixty Crores only) equity shares of Re.1/- each and alter the Clause - V (Capital Clause) of Memorandum of Association relating to Share Capital of the Company.

Shares of SADHANA NITROCHEM LTD. was last trading in BSE at Rs. 88.76 as compared to the previous close of Rs. 88.90. The total number of shares traded during the day was 65126 in over 993 trades.

The stock hit an intraday high of Rs. 91.37 and intraday low of 88.50. The net turnover during the day was Rs. 5836635.00.

Source : Equity Bulls

Keywords

SADHANANITROCHEM INE888C01040 FundRaising RightsIssue