Inox Wind Ltd.'s board of directors approved on Wednesday the letter of offer for the issue of equity shares on a rights basis for a total value of up to Rs 1,249.3 crore, according to an exchange filing.
The firm will issue 10.4 crore fully paid-up equity shares of a face value of Rs 10 at a price of Rs 120 apiece, including a premium of Rs 110. The ratio is set at five rights equity shares for every 78 equity shares held by eligible shareholders as on the record date, which is July 29, the filing stated.
The opening date for the rights issue will be Aug. 6 and the close is on Aug. 20. The last date for on market renunciation of rights entitlement will be Aug. 14, it said.
The renewable energy firm expects its number of outstanding equity shares after rights issue to be Rs 172.8 crore, assuming full subscription, with equity shares before said issue numbering in Rs 162.4 crore.
Shares of Inox Wind closed 0.13% higher at Rs 165.74 apiece on the NSE, compared to a 0.63% rise in the benchmark Nifty. The stock has risen 10.51% in the last 12 months and fallen 8.44% on a year-to-date basis.
Out of nine analysts tracking the company, eight have a 'buy' rating on the stock, one recommends 'hold', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 38%.
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