Announced Tue, 26 Aug · 14:01 IST

Approval of terms of the rights issue and Letter of Offer

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AI summary

Scoobee Day Garments' board approved a rights issue of up to 45 lakh fully paid-up equity shares at ₹90 per share (face value ₹10, premium ₹80), aiming to raise up to ₹40.5 crore from eligible shareholders. The entitlement ratio is set at 1 rights share for every 3 existing shares held, with the record date fixed as September 2, 2025. The issue opens on September 12, 2025 and closes on September 19, 2025, with The Federal Bank as the banker to the issue. Post-issue share count will rise from 1.35 crore to 1.80 crore shares assuming full subscription. The board also scheduled the 31st AGM for September 29, 2025 and approved a revision in the Managing Director's remuneration, subject to shareholder approval.

Likely market impact

Existing shareholders face potential dilution of about 33% if fully subscribed and will need to decide whether to subscribe, renounce, or let the rights lapse before the September 19 closing date. The capital raise could strengthen the company's balance sheet but will increase the total share count, which may weigh on earnings per share in the short term.