Description

Patel Engineering Ltd has announced a rights issue offering 7 equity shares for every 40 shares held at Rs.27 per share (including premium of Rs.26), with record date on December 4, 2025.

Summary

Patel Engineering Ltd (Scrip Code: 531120) has fixed the record date for its rights issue of equity shares. The company is offering 7 equity shares of Re.1/- each at a premium of Rs.26/- per share (total Rs.27/-) for every 40 equity shares held. Trading in the company’s equity shares will be conducted on an ex-rights basis from December 4, 2025, in the dematerialized rolling settlement segment.

Key Points

  • Company: Patel Engineering Ltd (BSE Code: 531120)
  • Rights ratio: 7 equity shares for every 40 shares held (7:40 ratio)
  • Face value: Re.1/- per share
  • Premium: Rs.26/- per share
  • Total price per share: Rs.27/-
  • Payment terms: Full amount of Rs.27/- payable on application
  • Security type: Dematerialized securities in rolling settlement
  • Settlement number: DR-770/2025-2026

Regulatory Changes

No regulatory framework changes. This is a standard corporate action under existing rights issue regulations.

Compliance Requirements

  • Trading members must ensure transactions in Patel Engineering equity shares are executed on ex-rights basis from the specified date
  • All trades from December 4, 2025 onwards must reflect the ex-rights status
  • Proper settlement procedures must be followed for settlement DR-770/2025-2026

Important Dates

  • Record Date: December 4, 2025
  • Ex-Rights Date: December 4, 2025
  • Settlement Number: DR-770/2025-2026
  • Circular Date: December 2, 2025

Impact Assessment

Shareholder Impact: Existing shareholders have the opportunity to subscribe to additional shares at Rs.27 per share. The rights ratio of 7:40 (17.5%) represents a moderate dilution if not fully subscribed. Shareholders must pay the full amount upfront on application.

Market Impact: The stock will trade ex-rights from December 4, 2025, which typically results in a price adjustment to reflect the value transfer to rights holders. Trading members need to adjust their systems and client communications accordingly.

Capital Raising: At the offering price of Rs.27 per share with a 7:40 ratio, this represents a capital raising initiative for the company’s funding requirements. The significant premium (Rs.26 over Re.1 face value) indicates confidence in the company’s valuation.

Impact Justification

Rights issue affects existing shareholders with dilution implications; medium-sized offering (7:40 ratio) at significant premium to face value