Microfinance company Satin Creditcare Network is set to launch its maiden rights issue for subscription on August 12.
The record date for determining eligibility of shareholders was fixed at August 5. The issue will close on August 26.
Satin Creditcare is a micro finance institution promoted by Harvinder Pal Singh, Chairman-cum-Managing Director (CMD). The company provides prompt, hassle-free and affordable financial & community services to low-income households.
SCNL provides collateral-free, micro-credit facilities to economically active women in both rural and semi-urban areas, who otherwise have limited access to mainstream financial service providers.
Here are 10 key things about this rights issue:
1) No. of Rights Shares: The non-banking finance company planned rights issue of 1,99,82,667 partly paid-up equity shares of the face value of Rs 10 each (rights equity shares).
2> Issue price: The issue price has been fixed at Rs 60 per rights equity share, which is 23.3 percent discount to July 30 closing price when the issue was set.
3> Fund Raising: The company aims to raise Rs 119,89,60,020 via rights issue.
4> Objects of The Issue: The company intends to utilise the net proceeds from this issue towards augmenting capital base to meet future capital requirements and funding requirements for growth of the business and operations (over Rs 89 crore) and general corporate purposes.
5> Rights Entitlement Ratio: The company will issue 48 rights equity shares for every 125 existing fully paid shares held by eligible equity shareholders as on the record date.
6> Trading: The trading in Rights Entitlement shares will also begin on August 12, where eligible shareholders can either buy more Rights Entitlement shares or sell their full/part Rights Entitlement shares. Others can also buy if they want to participate in the issue.
7> Last Date for On Market Renunciation: The period during which the investors can renounce or transfer their Rights Entitlements which will commence from the issue opening date. Such period will close on August 21, 2020, in case of on market renunciation. Eligible equity shareholders are requested to ensure that renunciation through off-market transfer is completed in such a manner that the Rights Entitlements are credited to the demat account of the renouncee on or prior to the issue closing date.
8> Payment Schedule: At the time of making application by August 26, participants have to make a payment of Rs 15 per rights equity share (25 percent of issue price) and the rest Rs 45 per rights equity share will be paid later (for which one or more subsequent calls as may be determined by the board/committee of the board, from time to time).
9> Promoter and Promoter Group Participation: They will fully subscribe to the extent of their Rights Entitlement and do not intend to renounce such rights, except to the extent of renunciation within the Promoter and Promoter Group; and in the event of any under-subscription of the issue, they will subscribe to additional rights equity shares in the issue to the extent of at least minimum subscription of the issue size. They held 30.19 percent stake in the company and the rest is held by the public.
10> Financials: Satin Creditcare has reported a profit of Rs 154.97 crore in the year ended March 2020 against a profit of Rs 201.5 crore in March 2019 and Rs 74.80 crore in March 2018, while total income for the year ended March 2020 stood at Rs 1,503.4 crore against Rs 1,445.1 crore in March 2019 and Rs 1,031.2 crore in March 2018.
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