Padam Cotton Yarns rights issue: up to Rs 27,00,00,000 approved

• Type of action: Rights issue of equity shares
• Instrument: Equity shares of face value of Re.1/- each
• Issue size (aggregate amount): Up to Rs. 27,00,00,000/- (Rupees Twenty Seven Crore only)
• Mode: Rights basis to eligible equity shareholders of the Company
• Regulatory framework cited: Section 62(1)(a) of the Companies Act, 2013 and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and SEBI Listing Regulations
• Record date: To be notified subsequently

The company has described this as a "Right Issue" in the detailed disclosure provided as Annexure A to the outcome of the board meeting.

The board's outcome letter states that the rights issue will be offered "to the eligible equity shareholders of the Company, as on the record date (to be notified subsequently)." This means only shareholders whose names appear on the company’s register of members or in the depository records as of that record date will be eligible to receive rights entitlements.

As of this filing, the record date has not been announced, and there is no ex-date or timetable provided. The letter specifies that the terms will be decided "by the Board of Directors or a duly constituted committee of the Board of Directors at a later date."

The filing does not state:

• The rights issue price per share
• The ratio of rights shares to existing shares
• The total number of equity shares proposed to be issued
• The opening and closing dates of the rights issue

Instead, Annexure A notes that the rights issue will be "on such terms (as decided by the Board of Directors or a duly constituted committee of the Board of Directors at a later date)." The aggregate amount is described as "Right issue of face value of Re.1/- each (‘Equity Shares’) up to an aggregate amount upto Rs. 27,00,00,000/- (Rupees Twenty Seven Crore Only), on Rights basis".

The company has stated that the rights issue is "subject to receipt of regulatory/statutory approvals" and will be carried out "in accordance with the provisions of Section 62(1)(a) of the Companies Act, 2013 and the rules made there under and the applicable laws including the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended and SEBI Listing Regulations."

In the same meeting, the Board also "considered and decided to shift the Corporate Office of the Company" from Unit No. C-801 on the 8th Floor, i.e. 1318 Super built-up area of the building known as “Krish Cubical” located at Govardhan Partyplot Avalon Hotal Road, Sindhu Bhavan Marg, Thaltej, Ahmedabad-380059, Gujarat to 118, Sun Gravitas 1st Floor Near Shyamal Bridge Radio Mirchi Road Satellite, Ahmedabad 380015. The Board further decided to "keep and maintain the Books of Accounts of the Company at this new corporate office."

The meeting commenced at 05:45 P.M. (IST) and concluded at 06:00 P.M. (IST), and the outcome letter is signed by Dinesh Shreevastav, Whole-Time Director, DIN: 11030609.

Investors will need to watch for a subsequent announcement from Padam Cotton Yarns Limited specifying the record date, the rights issue price, the ratio, and the detailed timetable before making any decisions regarding participation.