Geojit Financial Services has announced a rights issue. The price of this rights issue has been fixed at Rs 50 per share. The company has fixed a ratio of 1:6 for the rights issue. This means that a shareholder can buy one additional share for every 6 shares he already holds. That is, on the record date, eligible shareholders of the company will be able to buy one equity share for every six equity shares.

 

In the exchange filing, the company has said, "The board of the company met on July 13, 2024, in which approval was given to issue equity shares of the company through a rights issue for an amount exceeding Rs 20,000 lakh to the eligible shareholders of the company as on the record date."

Share performance- On Thursday, the company's stock closed down 6.46 per cent at Rs 152.40. In the last one year, the company's stock has seen a rise of 193.36 per cent. The 52-week high of the stock is Rs 177. What is a rights issue - Under rights shares, new shares are issued to the existing shareholders in a fixed proportion. The company often resorts to rights issue to raise funds. Rights shares are sold to the shareholder according to the number of shares he has. To make the rights issue attractive, their price is kept lower than the current market price. The company's capital increases by issuing a rights issue.