Wednesday, January 18, 2017

Rights Offer : Orient Paper & Industries - Avoid

Issue Details:

Rights offer opens on 25-01 and closes on 09-02-2017.

ISSUE OF 73,16,742 EQUITY SHARES OF FACE VALUE Rs 1 EACH.

FOR CASH AT A PRICE OF Rs 68 INCLUDING A PREMIUM OF Rs 67 PER RIGHTS EQUITY SHARE.

THE RATIO : 1 RIGHTS EQUITY SHARE FOR 28 FULLY PAID-UP EQUITY SHARES HELD.
The stock is currently trading around Rs 77. After the Rights offer the equity will enlarge by 25%. As of now paper stocks are not fancied in the exchanges. 

The company's profitability is inconsistent. Avoid the offer.

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