KOTIC · price
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Awaiting price reaction for this filing.
Kothari Industrial Corporation has received in-principle approval from BSE for issuing 17,11,068 equity shares on a preferential basis to non-promoters. The shares have a face value of Rs. 5 each and will be issued at Rs. 207 per share, which includes a premium of Rs. 202 per share. The total value of the proposed issue is approximately Rs. 35.42 crore. This is only the stock exchange's preliminary clearance; the company still needs to complete the actual allotment and then apply for listing within 20 days of allotment.
Existing shareholders may see a small dilution in their stake once the shares are allotted, as new equity is being issued to non-promoter investors. The issue is being done at a significant premium to face value (Rs. 207 vs Rs. 5), which suggests the incoming investors are valuing the company well above its base price. Short-term price action could be influenced by speculation around who the allottees are.