Description
COVIDH TECHNOLOGIES LIMITED has announced a rights issue offering 25 equity shares for every 1 share held, with record date set for October 24, 2025.
Summary
COVIDH TECHNOLOGIES LIMITED (BSE Code: 534920) has fixed the record date for its rights issue of equity shares. The company is offering 25 equity shares of Rs. 10/- each at par value for every 1 equity share held by eligible shareholders. Trading in the company’s shares will be conducted on an ex-rights basis from October 24, 2025.
Key Points
- Rights issue ratio: 25 equity shares for every 1 equity share held
- Face value: Rs. 10/- per share
- Issue price: At par (Rs. 10/- per share)
- Record date: October 24, 2025
- Ex-rights date: October 24, 2025
- Settlement number: DR-742/2025-2026
- Segment: Dematerialised Securities – Rolling Settlement
Regulatory Changes
No regulatory changes are introduced by this circular. This is a standard corporate action notification regarding a rights issue.
Compliance Requirements
- Trading members must ensure all transactions in COVIDH TECHNOLOGIES LIMITED equity shares are executed on an ex-rights basis from October 24, 2025
- Members must note the record date and settlement number for proper processing of trades
- Shareholders on record as of October 24, 2025 will be eligible to participate in the rights issue
Important Dates
- October 17, 2025: Circular notification date
- October 24, 2025: Record date for rights issue eligibility
- October 24, 2025: Ex-rights trading begins
- Settlement DR-742/2025-2026: Applicable settlement period
Impact Assessment
Market Impact: The 25:1 rights ratio represents a highly dilutive corporate action that will significantly increase the company’s equity base. This is an unusually high rights ratio that could substantially impact the stock price when trading begins on an ex-rights basis.
Shareholder Impact: Existing shareholders will have the opportunity to subscribe to 25 new shares for each share held, maintaining their proportional ownership if they fully subscribe. Non-participation will result in significant dilution of shareholding percentage.
Trading Impact: From October 24, 2025, all trades will be executed on an ex-rights basis, meaning buyers will not be entitled to participate in the rights issue. Stock price is expected to adjust downward to reflect the ex-rights status.
Operational Impact: Trading members must update their systems to reflect the ex-rights status and ensure proper settlement under DR-742/2025-2026.
Impact Justification
Significant corporate action with 25:1 rights ratio representing substantial dilution potential for existing shareholders; ex-rights trading begins on record date.