The microfinance company Satin Credit Care Network will launch its first rights issue on August 12 for the subscription.
The record date for determining shareholder eligibility is set for August 5th. This issue ends on August 26.
Chairman-cum-Managing Director (CMD) promoted Satin Credit Care, a microfinance company. Harwinder Pal Singh. The company provides prompt, hassle-free, and affordable financial & community services to low-income households.
SCNL provides non-collateral, micro-credit facilities to economically active women in rural and semi-urban areas, otherwise. There is a limited access to mainstream financial services companies.
Here are 10 key things about this rights issue:
1) The number of rights shares:
The non-banking finance company plans 1,99,82,667 partially paid equity shares at a face value of Rs.10 (rights equity shares).
2) Issue Price:
The issue price is set at Rs.60 per equity share, which is 23.3% off the July 30 closing price when the issue is set.
3) Fund Raising:
The company aims to raise Rs 119,89,60,020 via a rights issue.
4) Items of the Issue:
The Company intends to raise the capital base from the net income generated from this issue for business and operational growth (over Rs. 89 crores) and to meet future capital requirements and funding requirements for general corporate purposes.
5) Eligibility Ratio of Rights:
The Company will issue 48 rights equity shares for every 125 fully paid shares held by eligible equity shareholders by the record date.
Trading in rights entitlement shares will also start on August 12, where eligible shareholders can buy more rights entitlement shares or sell their full / part rights entitlement shares. Others may also purchase if they wish to participate in the issue.
7) Deadline for market rejection:
The period during which investors can waive or transfer their rights entitlements, starting from the issue opening date. In the case of market rehabilitation, such a period ends on 21st August 2020. Eligible equity shareholders are requested to see the waiver is completed through off-market transfer. This will be credited to the Demat account of waiver of rights entitlements on or before the issue closing date.
8) Payment Schedule:
At the time of application by August 26, participants will have to pay Rs.15 (25 percent of the issue price) for the rights equity share and Rs 45 for the remaining rights equity share.
For one or more subsequent calls as decided by the Board or Committee of the Board from time to time.
9) Promoter and Promoter Group Participation:
They deliberately subscribe to the merits of their rights and do not intend to relinquish such rights unless they have renounced the Promoter and Promoter Group; And in any case of under-subscription of the issue, they subscribe to the additional rights equity shares in the issue, up to a minimum subscription of the issue size. They have a 30.19 percent stake in the company, and the public holds the rest.
Satin Credit Care posted a net profit of Rs 154.97 crore for the year ended March 2020, up from Rs 201.5 crore in March 2019 and Rs 74.80 crore in March 2018. The total income for the year ended March 2020 was Rs. 1,503.4 crore, 1,445.1 crore in March 2019 and 1,031.2 crore in March 2018.