Ultracab (India) Limited has recently announced that its promoters, Mr. Nitesh Vaghasiya and Mr. Pankaj Shingala, intend to fully subscribe to their respective rights entitlements as part of the company’s ongoing Rights Issue. The Rights Issue entails the issuance of up to 3,43,52,100 equity shares of face value ₹2 each, priced at ₹714.50 per share, which includes a premium of ₹212.50. The total value of the issue amounts to ₹4981.05 Lakhs.

In a letter dated June 7, 2024, the promoters confirmed their decision to subscribe to the full extent of their rights entitlement, specifically 95,82,881 shares. They have also indicated that they will not renounce their rights entitlements, ensuring that they take up the full share allocation.

Further, in a show of commitment, Mr. Vaghasiya and Mr. Shingala have also agreed to subscribe to any additional shares that may be renounced by other promoters or members of the promoter group. It is worth noting that other members of the promoter group have agreed to renounce 33,65,192 shares in favor of Mr. Vaghasiya and Mr. Shingala.

The subscription will also include adjustments towards the repayment of the unsecured loans that the promoters have advanced to the company. This decision will likely lead to a change in the promoters' shareholding, as their shareholding percentage could rise due to the subscription of additional shares.

The company has confirmed its compliance with Regulation 38 of the SEBI Listing Regulations, ensuring that it will continue to meet the minimum public shareholding requirements post the rights issue. This move reflects the company's commitment to adhering to all regulatory guidelines, including maintaining a sufficient percentage of shares held by the public.

Investors and stakeholders are encouraged to stay informed about the developments related to Ultracab's rights issue and the company's compliance with listing regulations. The company has also made a free Demat account promotion available to those interested in participating in the rights issue.

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