In recent trading sessions, shares of the penny stock Advik Capital have experienced a notable surge, rising nearly 10 percent during intra-day trading on Monday, October 7. This increase is significant, especially against the backdrop of a broader market downturn.
The stock climbed as much as 9.8 percent, reaching ₹3.02. This performance is particularly impressive considering that benchmark indices have been on a downward trend, declining over 1 percent for six consecutive sessions. Despite this upward movement, Advik Capital is still 26 percent below its 52-week high of ₹4.10, achieved in January of this year. On a positive note, the stock has gained approximately 56 percent from its 52-week low of ₹1.94, noted in October of the previous year.
Over the past year, Advik Capital has demonstrated a robust performance, rising 17 percent and experiencing a remarkable 44 percent increase year-to-date in 2024. In addition, the stock has jumped 8 percent so far in October, showing resilience despite the overall market shedding almost 4 percent during the same period.
Extension of Rights Issue
Advik Capital recently announced an extension of its ongoing rights issue, originally set to close on October 4, now extended to October 10. The company’s Rights Issue Committee decided to extend the closing date to provide its shareholders with additional time to exercise their rights, which was communicated in a regulatory filing. The new deadline for submitting applications is October 10, 2024.
The letters relating to the rights issue—specifically the Letter of Offer (LOF), Composite Application Form (CAF), and Abridged Letter of Offer (ALOF)—remain unchanged apart from adjustments made concerning the closing date and subsequent changes in the post-issue activity timetable.
Details of the Rights Issue
The rights issue was approved by Advik Capital’s board during a meeting held on September 7, 2024. The company plans to issue a substantial 19,98,05,013 fully paid equity shares, each with a face value of Re 1, with an aim to raise ₹4,995.13 lakh, assuming full subscription.
The issue price for the shares has been set at ₹2.50 per share, including a premium of ₹1.50 per share. This pricing provides eligible shareholders with an opportunity to acquire additional shares at a discounted rate. The entitlement ratio is set at 14:30, allowing shareholders to purchase 14 rights equity shares for every 30 fully paid shares they currently own.
The record date for determining shareholder eligibility for the rights issue has been established as September 12, 2024. Once the issue is completed, the total number of outstanding equity shares is projected to rise to 62,79,58,613.
About Advik Capital
Advik Capital operates as a non-banking financial company (NBFC) and is registered with the Reserve Bank of India. The company primarily focuses on providing financial loans and a range of ancillary services. Its operations encompass offering loans and advances to industrial enterprises, financing leasing operations, and investing in emerging businesses and securities. This diversified approach positions Advik Capital as a significant player in the financial services sector.
The recent extension of the rights issue and the strong performance of Advik Capital’s stock amidst a generally bearish market reflect investors’ continued confidence in the company’s future prospects. This positive sentiment may attract more attention to Advik Capital as it moves forward.
