Jindal Worldwide surges to Rs 40 on the NSE on Friday, after the board approved a fresh Rs 650 crore rights issue fundraising plan.

The board cleared a plan to raise up to Rs 650 crore through a rights issue, which basically means offering new shares to existing shareholders so the company can bring in fresh capital.

The exact price, ratio and record date for the issue haven’t been decided yet. A committee set up by the board will work those details out and announce them later.

Alongside the fundraising, the board also approved raising the company’s authorised share capital, essentially the maximum number of shares it is allowed to issue, from Rs 101 crore to Rs 146 crore.

This needs shareholder approval at the company’s upcoming annual general meeting on September 1.

The board separately cleared the reappointment of Amit Yamunadutt Agarwal as Vice Chairman and Managing Director, effective September 3, again pending shareholder sign off.

This all comes on the back of a strong June quarter. Consolidated net profit jumped 85.8% year on year to Rs 32.4 crore, while revenue grew a more modest 2.7% to Rs 554.7 crore.

Worth noting though, part of that profit jump came from a one-off gain after the company reduced its stake in a step-down subsidiary, EV Volt, moving it from a subsidiary to an associate in late June.

Separately, the company’s electric vehicle arm, Jindal Mobilitric, got approval in May for its first electric scooter, an early sign of its push beyond textiles.

By the close on Friday, Jindal Worldwide shares settled at Rs 38.93 on the NSE, up 1.12% for the day, giving the company a market value of close to Rs 3,862 crore.

Discover the next big investment! Tradz by EquityPandits’ IPO screener helps you identify promising initial public offerings. Download Tradz by EquityPandit and get ahead of the curve! Sign Up Now & Find Your Next IPO Gem!