Indian Infotech and Software Ltd Plans a ₹490 Million Power Move With Rights Issue

Indian Infotech and Software Limited (IISL), a non-banking financial company, has launched a rights issue to mobilize up to ₹49 crore (₹490 million) from its current shareholders. The rights issue was available for subscription on February 6, 2024, and ended on February 13, 2024. The firm issued 261,453,270 new equity shares at an issue price of ₹1.6 per share, with a face value of ₹1 per share. The entitlement ratio was fixed at 13 rights equity shares for each 50 fully paid-up equity shares as of the record date, i.e., January 29, 2024.

 

The major purpose of this rights issue is to enhance the working capital of the company and finance general corporate purposes. IISL was incorporated in 1982. It lends money to companies and individuals and makes investments in growth businesses, particularly those that support the Make in India initiative.

 

Major highlights:

 

Total size of issue: ₹41.83 crore (₹418.3 million), close to the announced ₹490 million

 

Issue price: ₹1.6 per share, face value ₹1 per share

 

Entitlement: 13 new shares for each 50 shares held

 

Record date: January 29, 2024

 

Subscription period: February 6 to February 13, 2024

 

Listing: BSE (Bombay Stock Exchange)

 

Utilization of proceeds: Working capital and general corporate requirements

 

The rights issue offers current shareholders a chance to enhance their holdings at a modest premium, along with allowing IISL to strengthen its capital base for further growth.

 

Sources: Chittorgarh, Bigul, Value Broking