Outcome of the Rights Issue Committee Meeting -Withdrawal of Right Issue.
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Eureka Industries has decided to withdraw its rights issue, which was originally opened from 9th April 2025 to 8th May 2025. The issue was for 4.9 crore equity shares at ₹10 per share (issued at par) aggregating to ₹49 crore, offered in the ratio of 28 rights shares for every 5 shares held. The withdrawal was caused by BSE not approving the basis of allotment within the required timeline, which prevented the company from crediting shares to shareholders' demat accounts and unblocking their funds. Investor complaints and pressure added to the decision. The company has stated it will coordinate with banks to unblock the application money and refund investors.
Existing shareholders will get their blocked application money refunded/unblocked, but the company loses a planned ₹49 crore capital raise, which may delay growth plans or force alternative fundraising. The failed issue and regulatory hiccup may dent investor confidence in the stock.