Gayatri Projects has raised Rs144 crore through a rights issue of shares at Rs120 each. The ratio for rights issue was 1:1 which has been fully subscribed. After the rights issue, the promoter's stake in the company rose to 63.47% from 55% which means the promoter has subscribed for 72% of the total offer under rights issue.
View: We view this as positive as the promoter has managed to increase his stake in the company via this exercise and further has been able to bring down the pledged shares proportion to 42% of his total holding from 97%. The funds can be now utilised for debt repayment or for investment in its power portfolio. We maintain Buy on the stock.
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View: We view this as positive as the promoter has managed to increase his stake in the company via this exercise and further has been able to bring down the pledged shares proportion to 42% of his total holding from 97%. The funds can be now utilised for debt repayment or for investment in its power portfolio. We maintain Buy on the stock.
....more info