Franklin Industries Ltd, a Gujarat-based agricultural commodity trading and contract farming service provider, has launched a Rs. 38.83 crore rights issue for subscription on May 24, 2024. The funds will be used for expansion plans, working capital requirements, and general corporate purposes. Right issue of the company are offered at a price of Rs. 3.58 per share as compared to closing share price of Rs. 7.50 per share on 24 May, 2024. Rights Issue will close on 11 June, 2024.
The company plans to issue 10,84,50,000 fully paid-up Equity Shares of face value of Rs. 1 each for cash at a price of Rs. 3.58 per Equity Share, totaling Rs. 38.83 crore. The rights entitlement ratio is fixed at 3:1, with 3 Rights equity shares for every 1 fully-paid equity share held by shareholders on May 13, 2024.
The last date for On-market Renunciation of Rights Entitlements is 5 June, 2024. Out of the issue proceeds of Rs. 38.83 crore, company intends to use Rs. 29.26 crore towards working capital requirement and Rs. 9.31 crore towards general corporate purposes. The company’s total income increased by 148% YoY to Rs. 50.96 crore for FY23-24, while its net profit grew by a multiple of 10 to Rs. 10.46 crore.
