This penny stock is a watch for 4:1 rights issue: do you own it?

The Board of Directors in a regulatory filing said that “In accordance with Regulation 30 and other applicable rules of SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015, we wish to inform you that the Board of Directors of the Company in its meeting held today i.e. 20th August , 2022 considered and approved the following businesses:-

1. Right Issue Size– The committee has fixed Rs. 4429.51 lakh as the right issue size.

2. Number of Right Shares– 4,02,68,236 equity shares

3. Right Issue Price– Rupee. 11/- per equity share (including premium of Rs.1/- per share)

4. Rights Entitlement Ratio– 4 (four) new shares for every 1 (one) existing equity shares held by eligible shareholders as on the record date.

5. Record DateRecord date fixed as Thursday, September 01, 2022, for the purpose of determining the eligible shareholders to apply for the issue.

6. Payment Terms– Issue price Rs. 11 per rights equity share (including premium of Re.1 per rights equity share) payable as under: Rs. 2.75 per issue share (including premium of Rs.0.25 per issue share) payable on application, Rs. 5.50 per issue share (including premium of Rs.0.50 per issue share) payable on first call and Rs. 2.75 per issue share (including premium of Rs.0.25 per issue share) shall be payable on the second call.”

The board further said, “The rights issue is proposed to open on September 12, 2022 and will close on September 30, 2022. The last date for market relinquishment will be September 26, 2022.”

Shares of Gautam Gems Ltd closed on Friday 13.58 each, down 4.57% from previous close 14.23 per share. In the last 1 year, the stock has gained 48.58% and on YTD basis, the stock has fallen by 3.76% so far in 2022. On BSE, the stock had touched a 52-week high. 52-week low of 20.10 on (09/02/2022) and At 8.27 (31/08/2021) it shows that the stock is trading below 32.43% high and 64.20 percent above low at current market price.

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