Outcome of the Rights Issue Committee Meeting -Withdrawal of Right Issue.
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Eureka Industries has withdrawn its proposed rights issue of 4.9 crore equity shares at ₹10 per share, which would have raised up to ₹49 crore. The issue was offered in the ratio of 28 rights shares for every 5 shares held and was open from April 9, 2025 to May 8, 2025. The Rights Issue Committee decided to withdraw on May 30, 2025 because BSE did not approve the basis of allotment within the required timeline, leaving the company unable to credit shares or finalize allotment. Investors' funds were blocked during this period, prompting complaints. The company has committed to coordinating with banks and its registrar (Skyline Financial Services) to unblock the application amounts and refund investors.
Existing shareholders who applied for the rights issue will get their money back (unblocked from bank accounts). The company's ₹49 crore fund-raising plan has failed, which could limit its growth or expansion plans. This is a negative development that reflects poor regulatory coordination and may hurt investor confidence in the stock.