Avantel Limited has informed the Exchange regarding 'Approval of Price, Rights Entitlement Ratio and Record date for the purpose of proposed Rights Issue'.
AVANTEL · price
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Avantel Limited's board approved a Rights Issue of up to 2,02,26,100 fully paid-up equity shares of face value ₹2 each at an issue price of ₹40 per share (including ₹38 premium). The total issue size is approximately ₹80.90 crores. The rights entitlement ratio is 10 Rights Equity Shares for every 121 equity shares held by eligible shareholders as on the record date of May 7, 2025. The rights issue opens on May 15, 2025 and closes on May 22, 2025. Post-issue, outstanding shares would rise from 24.47 crore to 26.50 crore assuming full subscription.
Existing shareholders will get the opportunity to subscribe to additional shares proportionally, but their ownership will be diluted if they do not participate. The issue price of ₹40 against a ₹2 face value represents a substantial premium, suggesting confidence in valuation. The market may react to the dilution and the capital raise plan in the short term.