Compuage Infocom Ltd. is a small cap company with a market cap of ₹150.42 cr that is about to issue rights entitlement shares in the ratio of 8:25 to its shareholders.
Let us begin by understanding what a rights issue is.
What is a rights issue
A rights issue is conducted by a company trying to raise capital from shareholders whereby it allows its existing shareholders to buy additional shares at a discounted price. As a result of the rights issue, the total price of the shares of the company comes down. Though the number of additional shares that can be bought is limited on a pro-rata basis – e.g. in this case, only 8 shares can be bought by shareholders for every 25 shares they hold on the record date. The shareholders may also choose to not buy any additional shares at all.
Eligibility of the rights issue
Rights issues are issued in the primary market but unlike IPO or FPO, they are open to be bought by only the existing shareholders. The shares become ex-rights one day before the record date because it takes T+2 days to deliver the shares to the investor’s demat account. Therefore, in order to participate in the rights issue, the shareholder must have bought the shares at least two days before the record date.
Important details of the rights issue
|Record date||Nov 14, 2022|
|Issue open dates||Nov 23, 2022|
|Issue close date||Dec 2, 2022|
|Number of shares issued||2,07,92,258|
|Issue size||₹41.58 cr|
|Issue Price||₹20 per share|
|Face Value||₹2 per share|
|Listing at||NSE, BSE|
|Entitlement||8 equity shares for every 25 equity shares held on the record date|
With the rights issue, its equity shares are going to increase in number from 6.49 cr to 8.57 cr. The BSE Ltd. will act as the designated stock exchange for the rights issue. The issue price is going to be ₹20 per share while it closed at ₹24.50 on 15th November, 2022 after gaining 7.46% on a single day.
|Credit of rights entitlement||–|
|Renunciation of rights entitlements||Nov 29,2022|
|Deemed date of allotment||–|
Compuage Infocom Ltd – Company Overview
Its core business comprises trading in computer parts as well as other software and telecom products. Its business is divided into 4 segments that include
- IT consumer services (mobile phones, accessories, wearables etc.)
- Hardware services (basic and chip level repairs etc.)
- Cloud Computing (infrastructure, management, application etc.)
- Enterprise solutions (network, security software etc.)
The company has 12,000 online and offline partners, 25 warehouses, 28 global brands and operations in 7 countries.
In the quarter ending in 30th September 2022, the company had earned a profit of ₹8.4 cr and in the year ending in 31st March 2022, the company had made a revenue of ₹4223.9 cr, a profit of ₹26.76 cr and had total assets worth ₹1180.5 cr. Overall, the compuage Infocom share price has fallen by around 45% since the beginning of 2022.
How to apply for Compuage Infocom rights issue
Follow this step-by-step guide in order to apply for the rights issue –
- Eligible shareholders will receive their rights entitlement (RE) in their Demat account before the issue opens. The rights entitlement is a temporary form of securities in the Demat and not the actual shares.
- Demat account holders can apply for the rights issue through ASBA. You can also apply online if your bank supports online applications.
- You’ll need to provide the following details.
- Cheque/DD details (non ASBA)
- Depository participant’s IP
- PAN number
- DP details – DP Id and beneficiary number
- Signature -in the case of a joint account the form should contain the signatures of both parties
- In case you want to split your rights issue, you need to fill in Part D of the application form.
The registrar for the offer is Karvy and Link Intime.
Now that you know about the Compuage Infocom rights issue, you may want to know more about upcoming rights issues and IPOs. If you are interested in investing in any stocks or other securities try opening a demat account in a matter of minutes today!
What is the Compuage Infocom issue price?
The Compuage Infocom issue price is ₹20 per share.
What is the Compuage Infocom rights issue open date?
The opening date for the Compuage Infocom rights issue is November 23rd 2022.
Which sector is Compuage Infocom in?
Compuage Infocom is a small cap company in the IT sector.
What is the Compuage Infocom record date for rights issue?
The record date for the rights issue of Compuage Infocom is November 14th, 2022.
What is the Compuage Infocom allotment date for rights issue?
The allotment date for the Compuage Infocom rights issue is not known yet.
What is the Compuage Infocom credit date for rights issue?
The credit date for the Compuage Infocom rights issue is not known yet.
Disclaimer: This article is written for educational purposes only. The securities quoted are examples and not recommendations.