MUMBAI - In a recent development, UPL Limited has announced the approval of the first call on partly paid-up equity shares by its Rights Issue Committee. The call, set at 25% of the issue price, amounts to ₹90 per share. This comprises ₹0.50 towards the paid-up value and ₹89.50 towards the premium. The company has established Thursday, January 30, 2025, as the Record Date to identify the holders of these shares.
The decision follows the committee’s previous meeting on November 20, 2024, where terms of the Rights Issue and the Letter of Offer were approved for the issuance of 9,38,25,955 partly paid-up Equity Shares. Shareholders of record on the specified date will receive the first call notice, as per the committee’s resolution.
This move is a part of the company’s capital management strategy, and the call notice is a significant step in the rights issue process, which involves offering new shares to existing shareholders. The funds raised through this process are often used for various corporate purposes, including but not limited to, paying down debt, funding new projects, or expanding operations.
The committee’s decision and the forthcoming Record Date are critical for shareholders, as it determines their eligibility to participate in the rights issue. Investors holding the partly paid-up equity shares will need to pay the first call to fulfill their subscription obligations and maintain their proportionate ownership in the company.
The information regarding this announcement is based on a press release statement and is a matter of record, without any endorsement of the claims. It’s important for investors to note that rights issues can affect share prices and ownership dilution, and they may want to consult financial advisors before making investment decisions.
As the company proceeds with its rights issue, the market will be watching closely to see the uptake of the new shares by existing shareholders and the subsequent impact on UPL Limited’s capital structure and stock performance.
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