NACL Industries to raise ₹250 crore via rights issue at 56% discount; Details here

NACL Industries Ltd. the manufacturer and marketer of crop protection products, announced on Monday, December 8, that its board has approved raising a sum of ₹250 crore through a rights issue.

The company will be issuing up to 3.25 crore fully paid-up rights equity shares of face value of ₹1 each. Shares will be issued on a fully paid-up basis.

The rights issue price has been fixed as ₹76.7 per share, which is a discount of 56% to NACL Industries' closing price from last Friday.

Existing shareholders of NACL Industries will be entitled to receive five rights equity shares, for every 31 shares that they own as on the record date. Record date for the rights issue has been fixed as Friday, December 12.

This means, that those shareholders who have shares of NACL Industries in their demat account as of Thursday's closing, will be eligible to apply for the rights issue.

NACL Industries' rights issue will open on Monday, December 22, and close on Tuesday, December 30.

The on-market renunciation period will begin on Monday, December 22, and close on Wednesday, December 24. On market renunciation generally means a shareholder selling his rights entitlements in the open market to another investor, similar to regular shares.

An investor, who buys the rights equity during the on market renunciation period, must then apply for the actual rights shares and pay the application money before the issue closes. Failure to do so would mean that the purchased rights lapse and become worthless.

A rights issue is generally used by a company as a fund raising method where it issues shares to existing shareholders, usually at a discount to the current price, thereby ensuring fund mobilisation, without increasing the debt burden on the company's balance sheet,

Shares of NACL Industries ended 1.9% lower on Friday at ₹174. The stock has risen 160% so far in 2025, and is among the top performing smallcap stock this year.