Nature of the Event

Regulatory filing pursuant to SEBI ICDR Regulations for a rights issue to existing public shareholders.

Key Quantitative Figures

  • Total Issue Size: Up to 92,03,008 Equity Shares
  • Face Value: ₹10 per share
  • Issue Price: ₹115 per share (including a premium of ₹105 per share)
  • Total Proceeds: Up to ₹10,583.46 Lakhs (₹105.83 Crore)
  • Promoter Holding Pre-Issue: 5,68,42,105 shares (84.11%)
  • Post-Issue Capital (if fully subscribed): 7,67,81,956 shares
  • Securities Premium Account (Pre-Issue): ₹21,647.08 Lakhs
  • Securities Premium Account (Post-Issue, projected): ₹31,310.24 Lakhs

Dates of Action

  • Record Date: August 20, 2026
  • Last Date for Credit of Rights Entitlements: September 2, 2026
  • Issue Opening Date: September 3, 2026
  • Last Date for On-Market Renunciation: September 7, 2026
  • Issue Closing Date: September 11, 2026
  • Finalization of Basis of Allotment: On or about September 15, 2026
  • Date of Allotment: On or about September 15, 2026
  • Date of Credit of Shares: On or about September 16, 2026
  • Date of Listing/Trading: On or about September 17, 2026

Parties Involved

  • Registrar to the Issue: KFin Technologies Limited
  • Banker to the Issue & Escrow Collection Bank: Kotak Mahindra Bank Limited
  • Designated Stock Exchange: BSE Limited
  • Monitoring Agency: CARE Ratings Limited
  • Statutory Auditors: MSKC & Associates LLP
  • Internal Auditors: Murthy & Kanth, Chartered Accountants

Purpose and Rationale

The primary purpose of the issue is to achieve compliance with Minimum Public Shareholding (MPS) requirements mandated under SEBI Listing Regulations. The promoter, Loko Hospitality Private Limited, will forgo its entire entitlement. The Net Proceeds of ₹10,528.46 Lakhs are proposed to be utilized as follows:

1. Repayment/Pre-payment of certain company loans: ₹4,135.13 Lakhs (39.28% of Net Proceeds)

  • Identified lenders include Kotak Mahindra Bank (₹4,562.75 Lakhs outstanding as of June 2026)
  • A prepayment charge of 1% is applicable on the Kotak Mahindra Bank loan.

2. Investment in wholly-owned subsidiary (SLN Terminus) for its debt repayment: ₹3,889.87 Lakhs (36.95% of Net Proceeds)

  • SLN's outstanding borrowings as of June 29, 2026, were ₹3,889.87 Lakhs from Kotak Mahindra Bank (₹2,915.04 Lakhs) and Aditya Birla Capital (₹974.83 Lakhs).
  • A prepayment charge of 4% is applicable on the Aditya Birla Capital loan.

3. General Corporate Purposes: ₹2,503.46 Lakhs (23.78% of Net Proceeds)

4. Issue Expenses: ₹55.00 Lakhs (0.52% of Gross Proceeds)

Capital Structure Impact

  • Pre-Issue Paid-Up Capital: 6,75,78,948 Equity Shares of ₹10 each (₹6,757.89 Lakhs)
  • Post-Issue Paid-Up Capital (if fully subscribed): 7,67,81,956 Equity Shares of ₹10 each (₹7,678.20 Lakhs)
  • The issue will result in a dilution for non-participating shareholders. The promoter's holding will reduce post-issue.

Cash Flow Implications

  • The issue will result in a cash inflow of up to ₹10,583.46 Lakhs.
  • Significant outflows are immediately planned for debt repayment (₹4,135.13 Lakhs for company, ₹3,889.87 Lakhs for subsidiary).
  • Funds deployed for general corporate purposes may be used for business growth, capex, or other approved purposes.

Material Litigation and Compliance

  • Material Litigation: One material civil case against the company involving ₹350.00 Lakhs with TGSPDCL (Telangana State Southern Power Distribution Company Limited) regarding a pre-CIRP electricity demand notice. The company has challenged it, claiming the liability was addressed under the NCLAT-approved resolution plan.
  • SEBI/Exchange Actions:
  • Paid a fine of ₹5,000 each to BSE and NSE in FY 2024-25 for a one-day delay in filing a related party transaction disclosure (Regulation 23(9) of LODR).
  • Received warning letters from SEBI and NSE for non-disclosure regarding the non-finalization of a forensic audit.
  • The company confirms it is not a wilful defaulter or fraudulent borrower.

Forward-Looking Statements

The document contains standard forward-looking statements regarding the company's business strategy, growth plans, and industry conditions, subject to risks and uncertainties.

Other Key Disclosures

  • Rights Entitlement Ratio: 6 (Six) Rights Equity Shares for every 7 (Seven) fully paid-up Equity Shares held as on the Record Date.
  • Trading of REs: Rights Entitlements (REs) will be traded under ISIN INE048C20025 from September 3 to September 7, 2026.
  • Minimum Subscription: The issue requires a minimum subscription of 90%. If not met, the entire subscription amount will be refunded within 4 days of the Issue Closing Date.
  • ASBA Mandatory: Applications must be made only through the ASBA (Application Supported by Blocked Amount) process.