Company Overview
Indrayani Biotech Limited (Scrip Code: 526445) has submitted a comprehensive disclosure for its upcoming rights issue, detailing both financial aspects and procedural requirements for the ₹487.89 crore fundraising initiative.
Rights Issue Structure
The company proposes to issue up to 3.25 crore partly paid-up equity shares at ₹15 each (₹10 face value + ₹5 premium), offering 5 rights shares for every 7 fully paid shares held as of the record date April 28, 2026. The payment structure involves ₹3.75 on application and ₹11.25 payable through subsequent calls.
Financial Utilization
Net proceeds of ₹4803.88 lakhs (after ₹75 lakhs issue expenses) will be allocated as:
- Working capital requirements: ₹2064.64 lakhs (42.98%)
- Repay promoter loan (Swaminathan Govindarajan): ₹500 lakhs (10.41%)
- Repay advance from Bougainvillea Investments: ₹1275 lakhs (26.54%)
- General corporate purposes: ₹964.24 lakhs (20.07%)
Issue Timeline & Process
The rights issue opens on September 15, 2026, and closes on October 14, 2026, with BSE as the designated exchange. Allotment will be made only in dematerialized form to existing shareholders' depository accounts. The company has established detailed refund procedures including NACH, NEFT, RTGS, and direct credit modes, with specific provisions for non-resident shareholders under RBI FEMA regulations.
Financial Performance & Risk Factors
The company reported standalone revenue of ₹2189.78 lakhs and PAT of ₹69.97 lakhs for FY 2025-26, while consolidated performance showed revenue of ₹13783.12 lakhs and PAT of ₹216.03 lakhs. Significant risk factors include auditor qualifications regarding interest-free loans to subsidiaries (₹4232.85 lakhs) without stipulated repayment schedules, delays in TDS deposits, and outstanding litigations including a ₹1390.17 lakh income tax demand for AY 2023-24.
Regulatory Compliance & Governance
The issue has received in-principle approval from BSE and complies with SEBI ICDR Regulations, though no SEBI filing was required as the issue size is below ₹50 crore. The document includes material contracts with MUFG Intime India (Registrar), NSDL, CDSL, and Axis Bank (Banker to Issue). All directors have provided declarations confirming compliance with SEBI regulations and the Companies Act, 2013.
Capital Structure Impact
The pre-issue paid-up capital of ₹455.36 lakhs will increase to ₹780.62 lakhs assuming full subscription, with securities premium account growing from ₹839.80 lakhs to ₹2466.09 lakhs. Promoters have committed to subscribing to their full entitlement without renunciation except to other promoter group members.