Renuka Shaw Wallace Rights Issue undersubscribed by 17%

Tuesday, 1 January 2013 00:29 -     - {{hitsCtrl.values.hits}}

Renuka Shaw Wallace Plc’s ambitious Rs. 1 billion Rights Issue which came under flak by minority shareholders has fallen short by 17%.

After many weeks since its conclusion, the Company announced yesterday that it raised Rs. 831.4 million via the Rights Issue, as opposed to the planned amount of Rs. 1 billion. The rights issue was on the basis of 5 for 4 for both voting and non-voting at Rs. 35 and Rs. 28 respectively. Of the voting segment, the subscription was 86.2% or Rs. 815 million out of Rs. 945 million, and non-voting the subscription was very low 26% or Rs. 16.4 million, out of the originally planned Rs. 63 million. The Company said 23.2859 million new voting shares and 586,673 non-voting shares were listed yesterday.

The original rights envisaged 27 million of voting and 2.25 million of non-voting shares.

Post-Rights Issue, a sub division of shares into two is pending as well based on the shareholding as at end of trading of 3 January 2013.

Despite the under subscription, the price of Company’s voting share gained by 40 cents to Rs. 36.40 yesterday whilst that of the parent Renuka Holdings dipped by 70 cents to Rs. 36.10.

Major shareholders of COC are Renuka Agro Exports (50.6%), J.B. Cocohell (5.4%), Renuka Hotels Ltd., (3%), investor K.C. Vignarajah (3%) and Capital Alliance (2%) as of end September 2012.

As of September 2012 net asset value per share of the Group was Rs. 61.85, up from Rs. 57.44 in March whilst Consolidated earnings per share was Rs. 5.41 in the first half, up from Rs. 2.99 a year earlier. In the quarter ended September it was ERs. 1.70, down from Rs. 2.20 a year earlier.