Announced Mon, 16 Mar · 19:39 IST

Outcome of the Board Meeting for the Allotment of Rights equity shares

Fund Raising View source PDF

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Price reaction · full curve 14 horizons · vs prior close
-3.1%1-day move
₹2.28
prior close
₹2.18
base price
After-mkt
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-0.5-0.5-0.5-0.5-3.1-7.0-2.6-3.5+2.6-6.6-21.5-37.3-56.6-57.0
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AI summary

Padam Cotton Yarns has allotted 9.03 crore Rights Equity Shares at ₹2.07 per share (face value Re.1 plus ₹1.07 premium), raising roughly ₹18.71 crore in line with its Letter of Offer dated February 18, 2026. Following this allotment, the company's paid-up equity capital has risen from ₹12.91 crore to ₹21.95 crore, with total outstanding shares increasing from 12.91 crore to 21.95 crore. The Board approved the allotment at its meeting on March 16, 2026, after finalising the basis of allotment with BSE as the designated stock exchange. Shareholders who did not subscribe to their rights entitlement would have seen their proportional holding diluted accordingly.

Likely market impact

Existing shareholders face dilution of around 70% in their stake since the share count jumped significantly. The modest premium of ₹1.07 over face value suggests the company raised primarily to meet capital needs rather than reward shareholders at a premium price.