Now Reading: Rights issue, reverse stock split: October 12 is last day for Ola Electric, AvenuesAI
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Rights issue, reverse stock split: October 12 is last day for Ola Electric, AvenuesAI
Rights issue, reverse stock split: October 12 is last day for Ola Electric, AvenuesAI
Monday, 12 October, is the last day to buy shares in Ola Electric Mobility Ltd and AvenuesAI Ltd to qualify for their upcoming corporate actions. Both companies have fixed Tuesday, 13 October, as the record date for a rights issue and a reverse stock split respectively.
Ola Electric’s board has approved a rights issue of partly paid-up equity shares worth approximately ₹1,000 crore, at an issue price of ₹27 per share, including a premium of ₹17. The stock closed at ₹35.13 apiece on Friday, 9 October, down 30% over the past year. AvenuesAI will consolidate every 10 existing shares (face value Re 1) into one share (face value ₹10), reducing the number of shares held by about 90% while keeping total face value unchanged. The stock ended at ₹14.91 on Friday, 9 October, and has declined 42% over two years.
Indian Opinion Analysis
Rights issues and reverse stock splits are capital structure adjustments that dilute existing holders in one case and reduce share count in the other. Ola Electric's ₹1,000 crore rights issue, priced at a discount to the market price of ₹35.13, will test demand for the stock after a 30% annual drop. AvenuesAI's consolidation affects every holder proportionally but often attracts retail speculation. Both actions succeed or fail based on investor participation in the coming weeks, with the record date set for 13 October.
Source: livemint.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
