Hind Rectifiers Allots 10.8 Lakh Units in Preferential Issue to Tata Mutual Fund; Refines Unutilized Funds Deployment
Hind Rectifiers Limited has announced details of a preferential allotment, confirming the issuance of convertible units to a non-promoter institution. The company allotted 10,86,366 units to Tata Mutual Fund (Small Cap Fund), which is categorized as a Non-Promoter Institution.The preferred issue was conducted for cash consideration and resulted in total proceeds aggregating ₹ 100,00,00,000/-. The allotment involved an issue price of ₹ 920.50 per equity unit, with a premium detailed at ₹ 918.50 per warrant (which includes the warrant subscription price and warrant exercise price).
In response to observations from the Stock Exchanges concerning the transaction, Hind Rectifiers Limited provided clarifications regarding the planned deployment of unutilized funds derived from the issue.
The company previously outlined the potential uses for the proceeds. Following a query received from the National Stock Exchange (NSE), the management confirmed that investment of unutilized funds in high-quality liquid mutual funds is not permissible. Consequently, the company has omitted this specific mode of deployment from its proposed plan for unutilized funds.
For the remaining unutilized funds, Hind Rectifiers Limited stated it will temporarily park the money in approved avenues, including:
- Interest bearing deposits with scheduled commercial banks;
- High-quality liquid mutual funds (subject to current restrictions);
- Money market instruments and other instruments that are neither high risk nor capital eroding, in line with the company’s investment policy and applicable laws.
HIRECT Stock Price Movement
As of 1:17 PM, shares of Hind Rectifiers Limited are slipping by 2.20% in live trading, currently registering at ₹1074 after shedding ₹24.20 from the previous close. In intraday movement, the stock has traded within a range marked by a low of ₹1070.5 and a high of ₹1109.5.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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