Bodhtree Branches Out—Rights Issue Blossoms at ₹30/Share

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Bodhtree Consulting Ltd has formally announced the price of its impending rights issue, fixing the issue price at ₹30 per equity share. The action is designed to bolster the capital structure of the company and finance its current business activities and digitalisation initiatives.

The rights issue will give current shareholders a chance to build up their stakes in the company by subscribing to more shares at a discounted price. While the record date and entitlement ratio are yet to be announced, the pricing is down by a significant figure from the current market price of around ₹51.30, and this makes it a very attractive offer for entitled investors.

This fund-raising exercise is when Bodhtree is focusing on:

Scaling up its range of cloud and analytics services
Boosting operational efficiency amidst volatile earnings
Addressing working capital needs and reducing debt exposure

Analysts suggest that the rights issue will improve liquidity and investor sentiment, if the proceeds are used judiciously to revive growth and profitability.

Relevant Sources: Moneycontrol, Screener, Chittorgarh