Intimation of In-Principle approval for issuance of 1,77,00,000 equity shares of Rs.10/- at a price not less than Rs.10/- to non-promoter on Preferential Allotment basis by the Company ....
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Jolly Plastic Industries Ltd has received in-principle approval from BSE for issuing 1.77 crore equity shares of Rs. 10 face value each to non-promoters on a preferential allotment basis. The floor price is set at Rs. 10, which is exactly the face value, meaning shares are being issued at par with no premium. At the minimum price, the company could raise around Rs. 17.7 crore. This is only the stock exchange's in-principle approval, and the company still needs to complete the actual allotment and then apply separately for listing of the new shares. The identities of the non-promoter allottees and the end-use of the funds have not been disclosed in this filing.
This is meaningfully dilutive for existing shareholders since the new shares are being issued at par (Rs. 10) with no premium, increasing the total share count by a large chunk relative to the company's small size. The stock may see pressure on or around the allotment date, and retail investors should watch for further disclosures on the allottees and the purpose of the fundraise.