To accept applications against undersubscribed portion of Right issue
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Gujarat Cotex Limited's Rights Issue was undersubscribed at 81.89%, with the company seeking extension from the Stock Exchange. The board has authorised acceptance of applications for the undersubscribed portion from existing shareholders. Four shareholders—Vaxlab Enterprises Limited, EklingJi Tradelink Private Limited, Markand Tradeventure LLP, and Kushmanda Tradeline LLP—have applied for 1,22,80,000 equity shares at Rs. 5 per share, totalling Rs. 6.14 crore. The company will verify receipt of subscription money in the escrow account before finalising the allotment.
The undersubscription indicates weak market interest in the rights issue, but acceptance of applications from existing shareholders may help the company meet minimum subscription requirements. Dilution risk exists for existing shareholders who do not participate.