Bajaj Hindhustan sets rights issue price at Rs 36/share

Sugar refiner Bajaj Hindusthan said on Tuesday it has set the price of its proposed rights issue at Rs 36 a share, to raise up to Rs 1,644 crore, pushing its shares up nearly 5 percent.

The company’s board has approved issuing two equity shares of the company for every one held to existing shareholders on rights basis, it said.

[caption id=“attachment_82825” align=“alignleft” width=“380” caption=“The company’s board has approved issuing two equity shares of the company for every one held to existing shareholders on rights basis. Reuters”] [/caption]

The firm had said in April, its board has approved raising up to Rs 2,000 crore via rights issue of equity shares.

In May, Fitch Ratings downgraded Bajaj Hindusthan’s national long-term rating to ‘A(ind)’ from ‘A+(ind)’ on sharper-than-expected deterioration in its credit profile.

At 12:47 p.m., shares of Bajaj Hindusthan, which have lost 20.55 percent in value terms over the last three months, were trading at Rs 54.30 , up 1.87 percent in a firm Mumbai market.

Reuters