Shares of penny stock Advik Capital surged nearly 10 percent in intra-day trading on Monday, October 7, despite a continued downturn in the broader stock market.
The stock rose by as much as 9.8 percent to ₹3.02, outperforming the benchmark indices, which saw a decline of over 1 percent for the sixth consecutive session. Following this rise, the NBFC stock remained 26 percent below its 52-week high of ₹4.10, which was reached in January. However, it had gained nearly 56 percent from its 52-week low of ₹1.94, recorded in October of the previous year.
It has risen 17 percent in the last 1 year and 44 percent in 2024 YTD. The penny stock jumped 8 percent in October so far even as the markets shed almost 4 percent.
Rights Issue Extension
Advik Capital had recently announced the extension of its ongoing rights issue, which was initially scheduled to close on October 4, to October 10. The company stated in a regulatory filing, “The Rights Issue Committee, in its meeting held on October 1, 2024, decided to extend the issue’s closing date to provide shareholders more time to exercise their rights.” The last date for submitting applications was extended to October 10, 2024.
There were no changes to the Letter of Offer (LOF), Composite Application Form (CAF), or Abridged Letter of Offer (ALOF), except for the adjustment in the closing date and the corresponding changes in the post-issue activity timetable.
Rights Issue Details
The board of Advik Capital had approved the rights issue during a meeting on September 7, 2024. Under this offering, the company planned to issue 19,98,05,013 fully paid-up equity shares with a face value of Re 1 each, aiming to raise ₹4,995.13 lakh, assuming full subscription.
The issue price was set at ₹2.50 per share, including a premium of ₹1.50 per share. This provided eligible shareholders with an opportunity to purchase additional shares at a discounted price. The entitlement ratio was set at 14:30, meaning shareholders could buy 14 rights equity shares for every 30 fully paid-up shares they owned.
Advik Capital had set September 12, 2024, as the record date to determine shareholder eligibility for the rights issue. Upon completion of the issue, the total number of outstanding equity shares would increase to 62,79,58,613.
About the company
Advik Capital is a non-banking financial company (NBFC) registered with the Reserve Bank of India. It primarily focuses on providing financial loans and ancillary services. The company’s activities include offering loans and advances to industrial enterprises, financing leasing operations, and investing in emerging businesses and securities.
The extension of the rights issue, along with the stock’s strong performance despite a bearish market, suggests that investors remained confident in Advik Capital’s future prospects.
