Hindware Home Innovation Ltd.'s board has approved raising Rs 250 crore through a right issue. The decision, made during a meeting of the Rights Issue Committee, comes as part of the company's strategy to strengthen its financial position and support future growth initiatives.
The rights issue will consist of approximately 1.1 crore equity shares priced at Rs 220 each, including a premium of Rs 218, according to an exchange filing. This issuance is expected to enhance Hindware's equity base, increasing the total outstanding shares from 7.2 crore to an estimated 8.3 crore, assuming full subscription.
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The record date for eligible shareholders has been set for Oct. 25, 2024. The rights issue will open for subscription on Nov. 7 and close on Nov. 22. During this period, shareholders will have the opportunity to purchase shares in the ratio of 119 shares for every 758 fully paid-up shares they hold on the record date.
Hindware has also outlined provisions for fractional entitlements. Shareholders with holdings below the minimum threshold will be allowed to apply for additional shares, with preferential consideration for one extra share, subject to availability.
Hindware is positioning this fundraising effort to support its strategic objectives, which include expanding its product offerings and enhancing its market presence.
Shares of the company fell as much as 3.53% to Rs 331.05 apiece. It pared losses to trade 2% lower at Rs 226.30 apiece as of 1:12 p.m. This compares to a 0.30% advance in the NSE Nifty 50 Index.
The stock has fallen 34.63% in the last 12 months. Total traded volume so far in the day stood at 0.55 times its 30-day average. The relative strength index was at 52.
All four analysts tracking the company have a 'buy' rating on stock, according to Bloomberg data. The average 12-month consensus price target implies an upside of 47.5%.
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