Shares of Senco Gold soared 10% during early trading today, reaching a day’s high of Rs 1,544 on the NSE. The rally came in response to the company’s announcement on Friday that its board had approved a qualified institutional placement (QIP) of Rs 500 crore and a 1:2 stock split.
Fund Raising Details of Senco Gold
The announcement was made after market hours, with the company informing the exchanges of the board’s decision during a meeting held on October 4, 2024. According to the official filing, the board approved the raising of funds through the issuance of equity shares or securities convertible into equity shares. The total amount raised will not exceed Rs 500 crore through the QIP route.
“This is to inform you that the Board of Directors of the company at their meeting held today i.e. 4th October 2024, inter-alia considered and approved the following matters: i) Raising of funds by way of issuance of Equity Shares, and/or securities convertible into Equity Shares at the option of the Company, for an aggregate amount not exceeding Rs. 500 crores (Rupees Five Hundred crores) by way of Qualified Institutional Placement (“QIP”),” the company stated in its exchange filing.
Stock Split Details of Senco Gold
In addition to the QIP, Senco Gold also announced a 1:2 stock split. Under this proposal, shareholders will receive 2 shares with a face value of Rs 5 for every 1 share with a face value of Rs 10. The company further detailed that this sub-division of equity shares will involve an amendment to the capital clause in the Memorandum of Association and Articles of Association.
“Sub-division/ split of 1 (one) equity share having face value of Rs. 10/- (Rupees Ten) each into 2 (two) equity shares having face value of Rs. 5/- (Rupees five) each by alteration of the capital clause in the Memorandum of Association of the company along with Articles of Association,” the company added in the filing.
Market Reaction
The stock surged following the announcement, reflecting investor enthusiasm about the company’s plans to raise capital and its decision to split shares, which often leads to increased liquidity. The day’s trading session saw Senco Gold shares climb 10%, with the stock hitting Rs 1,544 at its peak on the NSE.
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