The Board of Directors of the company in its meeting held today on May 06th, 2025 has approved the Draft Letter of Offer for the Rights Issue.
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The board of Veerkrupa Jewellers Limited approved the Draft Letter of Offer for a Rights Issue of up to 1,31,05,253 equity shares (approximately ₹13.10 crores) at ₹1 per share, which is the face value. The rights entitlement ratio is 1:1, meaning existing shareholders can buy 1 new share for every 1 share they hold. Post-issue, the total share count would double from around 13.10 crore shares to 26.21 crore shares, assuming full subscription. The record date for eligibility is yet to be announced. Separately, the board appointed Nehaben Chiragbhai Shah as Internal Auditor for a 3-year term (FY2025-26 to FY2027-28); notably, she is also a Whole-Time Director and the wife of the Managing Director, raising a related-party governance concern.
The Rights Issue at face value will dilute existing shareholders' stake unless they fully participate, and effectively doubles the share count, which could weigh on earnings per share. The related-party appointment of an existing director as Internal Auditor may raise governance red flags for minority shareholders.