Va Tech Wabag jumps 6% on news Rekha Jhunjhunwala will invest Rs 80 crore
The 75 lakh shares allotment to Rekha Rakesh Jhunjhunwala is valued at Rs 80 crore for 8 percent stake. With this, Jhunjhunwala will become the major individual shareholder in the company.
September 30, 2020 / 09:45 AM IST
Va Tech Wabag share price jumped over 6 percent in the morning trade on September 30 after the announcement Rekha Rakesh Jhunjhunwala, wife of ace investor Rakesh Jhunjhunwala, will invest Rs 80 crore in VA Tech Wabag, the Indian multinational player in the water treatment industry.
The stock was trading at Rs 202.15, up Rs 11.65, or 6.12 percent. It has touched an intraday high of Rs 204.65 and an intraday low of Rs 194.
The company has decided to raise Rs 120 crore via preferential issue, and on September 29, finalised the allotment of equity shares on a preferential basis.
"Board of directors approved the issue and allotment of 75 lakh equity shares of face value of Rs 2 each, for cash, at a price of Rs 160 per equity share aggregating to Rs 120 crore by way of preferential issue to four investors," company said in its BSE filing.
Board approved the allotment of 50 lakh shares to Rekha Rakesh Jhunjhunwala, 15 lakh shares to Basera Home Finance, and 10 lakh shares to Sushma Anand Jain and Anand Jaikumar Jain.
The 75 lakh shares allotment to Rekha Rakesh Jhunjhunwala is valued at Rs 80 crore for 8 percent stake in the Va Tech Wabag.
With this, Jhunjhunwala will become the major individual shareholder in the company.
According to Moneycontrol SWOT Analysis powered by Trendlyne, the company has decreasing promoter pledge with high TTM EPS growth.
However, Moneycontrol technical rating is neutral with moving averages being bullish and technical indicators being neutral.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.