Spencers Retail rights issue opens; 5 things to know

The Rs 80-crore rights issue of the department-stores operator Spencers Retail opens on August 4 and closes on August 18. Simultaneously, the trading in Rights Entitlement will also take place during the subscription period.

A rights issue is an offer to the existing holders to purchase additional shares at a discounted price and is issued in proportion to their existing holding.

Five key points to know about the issue:

1. The issue price has been fixed at Rs 75 per share and the rights entitlement ratio is two rights equity shares for every 15 shares held by eligible shareholders.

2. The company is offering 1,06,04,563 rights equity shares of Rs 5 each at an issue price of Rs 75 per equity share, including a premium of Rs 70 per equity share.

3. There is a rights entitlement ratio of 2:15, which means for every 15 equity shares held by a shareholder on the record date, two rights equity shares will be given. The record date for the rights issue was July 29, 2020.

4. ICICI Securities is the lead manager of the issue while Link Intime India Pvt Ltd is the registrar to the issue.

5. August 13 has been fixed as the last date of issue renunciation. The renunciation period is the window during which investors can renounce or transfer or sell their rights entitlements. This will commence from the issue opening date (August 4, 2020) and will end at least four days prior to the closing date (August 13, 2020).