BSEHittco Tools LtdMediumNeutral
Announced Mon, 19 Jan · 17:07 IST

Board of Director have approved subject to the approval of shareholders and BSE, the issue of share by way of Preferential Allotment

Fund Raising View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Hittco Tools' board approved issuing up to 4,45,000 equity shares via preferential allotment at Rs. 15.92 (non-promoter, 1.5 lakh shares to Mr. Shreyans Bhandari) and Rs. 13.92 (promoter, 2.95 lakh shares to Yash Vardhan Bhandari) per share, both above the Rs. 10 face value, subject to shareholder and BSE approval. The board also approved forfeiting 2,47,600 partly paid-up shares due to non-payment of call money, with nearly 80% of these belonging to Foresight Financial Services Ltd. A fresh special resolution will be filed after cancelling the prior AGM-approved preferential allotment resolution. Additionally, Mr. Ranjan Kotekar was appointed as Additional Independent Director, and the company entered a 5-year related-party rental agreement with Hittco Industries Pvt Ltd (promoter group) for manufacturing equipment at Rs. 9.95 lakh per year plus tax to boost production capacity.

Likely market impact

The preferential allotment to promoter group members signals promoter confidence and capital infusion, but at unknown market premium it could be dilutive to existing shareholders. Share forfeiture reduces share count and cleans up the capital structure, mildly positive. The related-party rental deal with promoter group entities warrants shareholder attention given the ongoing nature of promoter-related transactions.