Issue Details

  • Issue Size: Up to 10,00,00,000 equity shares of face value ₹2 each
  • Issue Price: ₹12 per share (including premium of ₹10 per share)
  • Total Amount: ₹12,000 lakhs (₹120 crore)
  • Rights Ratio: 19 shares for every 25 fully paid-up equity shares held
  • Record Date: Thursday, October 15, 2026
  • Issue Opening Date: Thursday, October 22, 2026
  • Issue Closing Date: Thursday, November 19, 2026 (extendable by up to 30 days)
  • Last Date for On-Market Renunciation: Friday, November 13, 2026
  • Minimum Subscription Requirement: 90% of Issue Size
  • Allotment Date: Monday, November 23, 2026 (on or about)
  • Listing Date: Monday, November 23, 2026 (on or about)

Financial Position (as disclosed)

  • Current Liabilities exceed Current Assets by: ₹5,060.08 lakhs (as at March 31, 2026)
  • Negative Net Worth: ₹4,068.21 lakhs (as at March 31, 2026)
  • Net Loss: ₹8,133.16 lakhs (FY 2026), ₹4,804.19 lakhs (FY 2025)
  • EBITDA: ₹3,179.99 lakhs (FY 2026)
  • Outstanding Unsecured Loans from Promoter: ₹10,354.27 lakhs (as at June 30, 2026)

Utilization of Proceeds

1. ₹7,500 lakhs: Adjustment of unsecured loans of promoter (Dayanand Munjal Investments Private Limited) against application money

2. ₹3,200 lakhs: Funding of working capital requirements

3. ₹1,275 lakhs: General corporate purposes (not exceeding 25% of gross proceeds)

Capital Structure

  • Pre-Issue Paid-up Capital: 13,14,95,219 equity shares of ₹2 each
  • Post-Issue Paid-up Capital (full subscription): 23,14,95,219 equity shares of ₹2 each
  • Securities Premium Pre-Issue: ₹5,870.12 lakhs
  • Securities Premium Post-Issue: ₹15,870.12 lakhs

Promoter Participation

Dayanand Munjal Investments Private Limited (Promoter) intends to subscribe to part or full extent of its rights entitlement and may renounce portion to promoter group members or specific investors. Promoter holds 69.52% pre-issue stake (9,14,17,272 shares).

Regulatory Approvals

  • SEBI, BSE and NSE filing completed on October 13, 2026
  • 'In-principle' approvals from BSE and NSE received on September 29, 2026
  • Designated Stock Exchange: NSE
  • Compliance with SEBI ICDR Regulations, Companies Act 2013, and Foreign Exchange Management (Non-Debt Instruments) Rules, 2019

Risk Factors Disclosed

The document discloses 73 risk factors including:

  • Dependence on key customers (top 10 customers contribute 88% of revenue)
  • Negative net worth and current liabilities exceeding current assets
  • Classification as "Red" vendor by key customers representing 77.5% of revenue
  • Significant losses in recent fiscal years
  • Outstanding litigation involving ₹48.81 lakhs in material civil proceedings
  • Past instances of delayed statutory filings and SEBI compliance issues

Foreign Investment Restrictions

  • Foreign investment regulated through Industrial Policy, 1991 and FEMA
  • Sectoral cap for company's sector is 100% under automatic route
  • Restricted investors from countries sharing land border with India require government approval
  • OCBs (Overseas Corporate Bodies) are derecognized as eligible investors

Key Intermediaries

  • Registrar to Issue: MCS Share Transfer Agent Limited
  • Banker to Issue: ICICI Bank Limited
  • Legal Advisor: T&S Law
  • Statutory Auditor: NSBP & Co.
  • Monitoring Agency: Care Ratings Limited

Financial Impact

The rights issue will improve the company's capital structure by reducing debt and converting promoter loans to equity, potentially restoring positive net worth from current negative position. Shares will be allotted only in dematerialized form with refunds processed through multiple electronic modes including ASBA unblocking, NACH, NEFT, RTGS, and physical refund orders for amounts below ₹1,500.