Penny stock hits 10% upper circuit on rights issue record date; stock surges 59% in one month

Gautam Gems rights issue record date: Shares of Gautam Gems, a small cap company with a market cap of a little over 64 crore as on September 1, rose 10% to hit upper circuit on Thursday. Gautam Gems share price was trading at Rs 12.77 per share on the BSE. The spike in the stock price pf this gems and jewellery stock comes amid record date of the rights shares. As on September 1, 2022, the stock has garnered a return of 59% in the past one month and yielded 73% return in the last one year.  

As per rights issues, the company has announced to give four shares against every one share held by eligible shareholders on the cut-off date.  

Here is Gautam Gems rights issue entails:  

Right Issue Size- The committee has decided and fixed Rs. 4429.51 Lakhs as the Right Issue Size. 

Number of Right Shares- 4,02,68,236 Equity Shares 

Right Issue Price- Rs. 11/- Per Equity Share (Including Re. 1/- Premium per share) 

Right Entitlement Ratio- 4 (Four) new shares for every 1 (One) Existing Equity Shares held by the eligible shareholders as on the Record Date as mentioned herein below. 

Record Date- Fixed the Record Date on Thursday, 01't September, 2022 for the purpose of determining the eligible shareholders to apply for the Issue. 

Terms of Payment- The Issue Price of Rs. 11 Per Rights Equity Share (including premium of Re. 1 Per Rights Equity Share) shall be payable as follows: 

Rs. 2.75 Per Issue Share (including premium of Rs. 0.25 Per Issue Share) shall be payable on Application 

Rs. 5.50 Per Issue Share (including premium of Rs. 0.50 Per Issue Share) shall be payable on First Call 

Rs. 2.75 Per Issue Share (including premium of Rs. 0.25 Per Issue Share) shall be payable on Second Call  

The Right Issue is proposed to open on 12 September, 2022 and will close on 30th September, 2022. The last date for market renunciation will be 26 September, 2022. 

Meanwhile, in a latest regulatory filing, the company said that a meeting of the Board of Directors will be held on Tuesday, September 6, 2022 to consider and fix the time, date and venue of the Annual General Meeting, subsequently approving the Notice of the Annual General Meeting of the Company. 

It will also discuss on appointing scrutinizer for e-voting and poll to be conducted for annual general meeting of the Company.