Minda Industries slips 4% post weak Q1 result; Rights issue opens on Aug 25

Minda Industries’ shares declined 4.3 per cent to hit an intra-day low of Rs 326.5 apiece on the BSE on Monday after the company reported subdued June quarter results.

The auto ancillary firm’s standalone net loss came in at Rs 53.11 crore as against Rs 31.6 crore profit in the year-ago period. On a quarterly basis, the loss came against a profit of Rs 5.17 crore. Besides, its revenue from operation tumbled 73 per cent YoY to Rs 228.16 crore, down from Rs 836.1 crore reported in Q1FY20. The Gurugram-based company reported an exceptional loss of Rs 81.47 crore during the quarter under review.

Moreover, its EBITDA (earnings before interest, tax, depreciation and amortisation) loss stood at Rs 71 crore, down from EBITDA of Rs 172 crore in Q1FY20. The EBITDA margin came in at (-)17.14 per cent, down from 11.96 per cent.

The Minda Industries’s rights issue will open tomorrow, August 25, and the last day for submission of application will be on September 8, 2020. Rights Entitlements will be credited to eligible investors by August 24 and the trading in Rights Entitlement will begin on August 25. The company will issue 10 million fully paid equity share of the face value of Rs 2 each for an amount aggregating to Rs 250 crore.

A rights issue is when a company offers its existing shareholders the chance to buy additional shares for a reduced price. Usually, the discounted price will stand for a specified time frame, after which it is returned to normal.
At 10:53 am, the stock of Minda Industries was quoting 3 per cent lower at Rs 331 per share, as against 0.53 per cent rise in the benchmark S&P BSE Sensex.