Seacoast Shipping Services Limited is pleased to announce its decision to undertake a Right Issue of equity shares to raise capital and further strengthen its financial position. The Board of Directors has approved the Draft Letter of Offer ("DLOF") for the issuance and allotment of fully paid-up equity shares of Rs. 1/- each ("Equity Shares") to eligible equity shareholders of the Company on a Rights basis.
The Right Issue will comprise 20,20,05,000 fully paid-up Equity Shares, priced at Rs. 2.40/- per share, including a premium of Rs. 1.40/- per Equity Share. The total issue size amounts to Rs. 48,48,12,000/-.
The Right Entitlement Ratio has been set at 3 (Three) new Right Shares for every 5 (Five) existing Equity Shares held by eligible shareholders as of the Record Date, which has been fixed as Thursday, 13th July 2023. Furthermore, it should be noted that only those individuals who have applied for their share applications prior to the designated record date of July 13th, 2023, will become eligible for the right issue. This ratio provides an opportunity for eligible shareholders to increase their stake in the Company.
The Right Issue period will commence on Friday, 21st July 2023, and conclude on Monday, 31st July 2023. During this period, eligible shareholders may apply for their entitled shares by submitting their applications and paying Rs. 2.40/- per Equity Share at the time of application.
The funds raised through this Right Issue will be utilized for various strategic initiatives, including enhancing the Company's infrastructure, expanding its fleet capacity, and strengthening its market presence. The Board of Directors firmly believes that this capital infusion will support the Company's growth objectives and enable it to capitalize on emerging opportunities in the shipping industry.
Prior to the Right Issue, Seacoast Shipping Services Limited had a total of 33,66,75,000 Equity Shares. Post the Right Issue, the Company's outstanding Equity Shares will increase to 53,86,80,000, representing a significant expansion in the Company's share capital.
Seacoast Shipping Services Limited's management expresses gratitude to the eligible shareholders for their continued support and confidence in the Company's growth trajectory. The administration is committed to creating long-term value for its stakeholders and believes that this Right Issue will contribute significantly to achieving this objective.
The issuance and allotment of the Equity Shares under the Right Issue are subject to the receipt of in-principle approval from BSE Limited and compliance with all applicable laws, including the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the Companies Act, 2013, and rules made thereunder, as amended from time to time.
Shareholders are encouraged to carefully review the detailed terms and conditions, including the rights and obligations associated with the Right Issue, as outlined in the Draft Letter of Offer (DLOF). The DLOF will be made available to eligible shareholders in due course.
