MIT affiliate invests INR 198 crore through preferential share issue
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On the reaction day the stock moved 3.3 pts more than Nifty Microcap 250 and 3.0 pts more than its Insurance peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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The company allotted 3,701,000 fully paid shares at INR 535 each to Massachusetts Institute of Technology and 238 Plan Associates LLC, an MIT affiliate. The issue included a premium of INR 530 per share and raised INR 198 crore. The shares rank equally with existing equity and remain subject to lock-in and listing approvals. Paid-up capital increased from INR 35.32 crore to INR 37.18 crore.
Adds growth capital and a high-profile investor, but existing shareholders face about 5.2% dilution from the enlarged share count.