Description

Travels & Rentals Limited announces rights issue at 1:1 ratio with record date on January 28, 2026. Issue price Rs. 15 per share (Rs. 10 face value + Rs. 5 premium).

Summary

Travels & Rentals Limited (BSE Code: 544242) has announced a rights issue of equity shares with a record date of January 28, 2026. The company will issue 1 equity share for every 1 equity share held at an issue price of Rs. 15 per share (face value Rs. 10 + premium Rs. 5). Trading will occur on an ex-rights basis from January 28, 2026 (Settlement No. DR-807/2025-2026). The entire issue price is payable at the time of application.

Key Points

  • Rights issue ratio: 1:1 (one new share for every one existing share)
  • Issue price: Rs. 15 per equity share (Rs. 10 face value + Rs. 5 premium)
  • Face value: Rs. 10 per equity share
  • Premium: Rs. 5 per equity share
  • Payment: Entire issue price payable at application
  • Ex-rights trading begins: January 28, 2026
  • Settlement number: DR-807/2025-2026
  • BSE scrip code: 544242

Regulatory Changes

No regulatory changes introduced. This is a standard corporate action notification under existing BSE listing requirements for rights issues.

Compliance Requirements

  • Trading members must execute all transactions in Travels & Rentals Limited equity shares on an ex-rights basis from January 28, 2026
  • Eligible shareholders (as on record date) will receive rights entitlements
  • Full payment of Rs. 15 per share required at time of application submission
  • Trading members must ensure proper settlement classification (DR-807/2025-2026)

Important Dates

  • January 22, 2026: Circular notification date
  • January 28, 2026: Record date for rights issue eligibility
  • January 28, 2026: Ex-rights basis trading commences
  • Settlement DR-807/2025-2026: Applicable settlement period

Impact Assessment

Shareholder Impact: Existing shareholders will have the opportunity to subscribe to new shares at a 50% premium to face value, maintaining their proportional ownership. Non-participation will result in ownership dilution.

Market Impact: The ex-rights trading from January 28, 2026 will likely result in share price adjustment to reflect the rights value. Trading volumes may increase as shareholders and arbitrageurs adjust positions.

Company Impact: The rights issue enables capital raising for the company, with full payment required upfront ensuring committed capital infusion. The 1:1 ratio represents significant equity expansion if fully subscribed.

Impact Justification

Rights issue at 1:1 ratio affects existing shareholders with dilution potential. Medium impact due to fundraising activity requiring shareholder participation.