Franklin Industries Rights Issue will open for subscription from 24 May 2024. the company aims for an issue size of ₹38.83 Crores through this rights Issue.
About the company
Franklin Industries trades agricultural commodities, including wheat, rice, maize, and vegetables such as capsicum and tomato. The company also trades fruits such as mango, watermelon, and grapes, as well as other agricultural products. Additionally, Franklin Industries engages in contract manufacturing for agricultural products like cucumber, onion, and castor.
The company acquires agricultural products from manufacturers either by making advance payments or following agreed terms. These products are then sold to its network of distributors. Due to its market presence, Franklin Industries has established strong relationships with both farmers and the wholesaler and retailer community.
In contract manufacturing, the company leases agricultural land to grow cucumber, onion, and castor to meet market demand. A portion of the yield is shared with farmers working on a contractual basis on the leased land, which supports the local farming community. As of February 2023, the company has exited the jewelry business, which involved trading gold and silver jewelry.
Objectives of the Issue
- Working capital requirement;
- General Corporate Purpose;
- To meet Issue Expenses.
Franklin Industries Rights Issue Timetable
| Last Date to buy shares | 10 May 2024 |
| Record Date | 13 May 2024 |
| Credit of Rights Entitlements | 23 May 2024 |
| Bid/Offer Opens On | 24 May 2024 |
| Renunciation of Rights Entitlements | 05 May 2024 |
| Bid/Offer Closes On | 11 June 2024 |
| Deemed Date of Allotment | 15 June 2024 |
| Credit Date | 24 June 2024 |
| Listing Date | 24 June 2024 |
Franklin Industries Rights Issue Details
| Issue Open | May 24, 2024 – June 11, 2024 |
| Security Name | Franklin Industries Ltd |
| Issue Size (Shares) | 108,450,000 |
| Issue Size (Amount) | ₹38.83 Crores |
| Issue Price | ₹3.58 per share |
| Face Value | ₹1 per share |
| Listing At | BSE |
| Terms of Payment | The Issue Price of Rs. 3.58/- per Equity Share shall be payable at the time of application. |
| Entitlement | 3 Rights Equity Share(s) for every 1 fully paid-up Equity Shares held on Record Date |
Company Financials
| FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 15.02 | 17.01 | 20.52 |
| Expenses | 15.09 | 17.04 | 20.21 |
| Operating Margin (%) | 0.55 | 0.25 | 1.54 |
| Net Income | 0.04 | 0.01 | 0.21 |
| ROCE (%) | 1.30 | 0.26 | 70.73 |
Rights Issue Documents
Lead Manager(s)
Rights Issue Registrar
SKYLINE FINANCIAL SERVICES PRIVATE LIMITED
D-153A, First Floor, Okhla Industrial Area,
Phase1, Delhi-110020
Phone: 011-40450193-197
Website: www.skylinerta.com
Company Contact Information
FRANKLIN INDUSTRIES LIMITED
301, Signature 01, Nr.Jaguar Showroom,
S.G. Highway, Makarba, Ahmedabad, Gujarat-380015
Phone: 7621806491
Email: muradprop1983@gmail.com
Website: www.franklinindustries.in
Final Thoughts
Applying for the rights issue is purely a personal choice. Make sure you conduct a detailed study of the company and its rights issues before you make an investment decision.
Happy investing
