Allcargo Terminals approves rights issue worth ₹80 crore; Stock falls

Shares of Allcargo Terminals Ltd. declined for the second day in a row on Tuesday, October 7, after the company's board approved raising funds through a rights issue.

The company will be raising ₹80 crore through this rights issue, where shares of face value of ₹2, will be issued to eligible shareholders.

Terms and dates of the rights issue are yet to be announced.

Rights issue is generally a fund raising exercise done by a company where it issues shares, generally at a discount to the current market price, allowing existing shareholders to participate in the fund raising process.

Shareholders who do not have shares of the company as on the record date, are not eligible to participate in the rights issue.

Shares of Allcargo Terminals are now trading 0.9% lower at ₹36.8. The stock has declined in five out of the last seven trading sessions.

The stock had seen a 27% surge in the four trading sessions between September 22 to September 25. The stock had risen 5% last Friday as well before this two day drop.

On a year-to-date basis, the stock is still down 3%.