On the last trading day of the year, there are many such penny stocks which have seen strong growth. One such stock is Thambbi Modern Spinning Mills Limited. There was a bumper purchase of this stock for just Rs.4. Because of this the stock has climbed up to 40 per cent. Let’s know what the company does.
What is share price: The share price of Thambbi Modern Spinning Mills reached Rs 5.29 on the BSE index. A day earlier the share price was Rs 3.78. In this context, the stock has gained up to 39.95%. This is the 52-week high level of the stock. The total trade volume according to the index is 6449.
What is the reason: Actually, this rise in the stock of this textile company has come under the rights entitlement. Recently, the company recently announced a rights issue of 1:1 ratio. Under this, the company is giving shares to investors at a cheaper price. The record date was December 16, 2022 and the issue opening date was December 29, 2022. The last date for the rights issue is January 17.
What is Rights Entitlement: These are much like coupon codes for shares. Under this, the investor gets three types of options. It can be used to buy shares at a discount price or sell them to someone else. This sale is done to the investor who wants to buy discounted shares. It also has an expiry date. The rights entitlements are listed on the stock exchange on the same day the rights issue opens. These can be traded on the exchange for about a week before being permanently delisted.
What does the company do: Thambbi Modern Spinning Mills is a textile company. It is engaged in the business of spinning and weaving different types of fibers and yarns. The company is also involved in the trading of cotton and yarn.