Padam Cotton Yarns Ltd has announced a Rights Issue of 9,03,70,000 equity shares, aggregating up to ₹18.71 crore. The issue will open for subscription from 2 March 2026 to 9 March 2026.
Important Timeline
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Record Date: 24 February 2026
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RE Trading Start Date: 2 March 2026
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RE Trading Last Date: 4 March 2026
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Issue Opening Date: 2 March 2026
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Issue Closing Date: 9 March 2026
Rights Issue Ratio
The Rights Issue is offered in the ratio of 7:10.
This means eligible shareholders will receive 7 Rights Entitlements (REs) for every 10 equity shares held as on the record date.
Who Is Eligible?
Investors holding shares of Padam Cotton Yarns as on 24 February 2026 (Record Date) will be eligible to receive Rights Entitlements (REs).
Credit of REs
REs will be credited to eligible shareholders’ Demat accounts before the issue opens.
Investors will receive an intimation from CDSL via email and SMS once the REs are credited.
Are REs Tradable?
Yes. Rights Entitlements (REs) will be tradable on the stock exchanges between 2 March 2026 and 4 March 2026.
During this trading window, investors can:
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Sell their REs if they do not wish to participate
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Buy additional REs if they wish to increase their entitlement
After the trading window closes, REs will be extinguished.
What Happens After RE Trading Closes?
Once exchange trading ends, renunciation of REs can only be done through off-market transfer.
Eligible shareholders must ensure that REs are credited to the transferee’s Demat account on or before 9 March 2026 (Issue Closing Date).
Will REs Automatically Convert into Shares?
No. REs do not convert automatically into equity shares.
Investors must apply for the Rights Issue by paying ₹2.07 per share.
How to Apply for the Rights Issue?
After receiving or purchasing REs, investors can apply through:
Online ASBA
Apply through your bank’s net banking platform (if ASBA-enabled), similar to an IPO application.
Online RWAP
Apply via the web-based application platform provided by the company’s Registrar and Transfer Agent (RTA).
Offline ASBA
If online ASBA is not available, fill out the physical application form sent by the RTA and submit it at a Self-Certified Syndicate Bank (SCSB) branch.
Important Note
If you neither renounce nor use your Rights Entitlements (REs) to apply for the issue, they will expire worthless after the closing date.
Investors are advised to review the official announcement carefully and take action within the prescribed timelines.