Description

Patel Engineering Ltd has fixed December 4, 2025 as the record date for rights issue of 7 equity shares for every 40 shares held at Rs.27 per share (including premium of Rs.26).

Summary

Patel Engineering Ltd (Scrip Code: 531120) has announced a rights issue with the record date set for December 4, 2025. The company will issue 7 equity shares of Re.1/- each for every 40 equity shares held by shareholders. The shares will be issued at a price of Rs.27 per share, which includes a premium of Rs.26 per share. Trading in the company’s equity shares will be conducted on an ex-rights basis effective from December 4, 2025 (Settlement No. DR-770/2025-2026).

Key Points

  • Rights issue ratio: 7 equity shares for every 40 equity shares held
  • Face value: Re.1/- per equity share
  • Issue price: Rs.27 per share (including premium of Rs.26 per share)
  • Full payment of Rs.27 per share required on application
  • Record date: December 4, 2025
  • Ex-rights trading begins: December 4, 2025
  • Settlement number: DR-770/2025-2026
  • Company scrip code: 531120

Regulatory Changes

No regulatory changes announced. This is a standard corporate action notification under existing SEBI guidelines for rights issues.

Compliance Requirements

  • Trading members must ensure all transactions in Patel Engineering Ltd equity shares are conducted on ex-rights basis from December 4, 2025
  • Trading members are required to take note of the record date and settlement arrangements
  • Full payment of Rs.27 per rights share must be collected on application from investors

Important Dates

  • December 2, 2025: Circular notification date
  • December 4, 2025: Record date for determining eligible shareholders
  • December 4, 2025: Ex-rights trading commences (Settlement No. DR-770/2025-2026)

Impact Assessment

Shareholder Impact: Existing shareholders holding shares as of the record date will be entitled to subscribe to additional shares at Rs.27 per share. This represents a capital raising opportunity for the company and a potential dilution event for non-participating shareholders.

Trading Impact: The ex-rights trading status will adjust the market price of existing shares to reflect the value transfer to rights entitlement. Trading members must ensure proper settlement and pricing adjustments from December 4, 2025.

Market Operations: The rights issue with a 7:40 ratio indicates moderate capital expansion. The premium of Rs.26 over face value of Re.1 suggests confidence in the pricing relative to market conditions.

Impact Justification

Rights issue affects existing shareholders with dilution opportunity. Medium impact as it provides capital raising mechanism with defined rights ratio of 7:40.