Steelco Gujarat Completes Rights Issue Allotment

Allotment Size: 13,30,060 Equity Shares
Total Issue Value: ₹14.90 crore

Reader Takeaway: Capital raised successfully; increased equity base. Funds to be utilized as per plan.

What just happened

Steelco Gujarat Ltd announced the final allotment of 13,30,060 equity shares through its recent Rights Issue. The shares were priced at Rs. 112 per share, with Rs. 10 as face value and Rs. 102 as premium. The total value of this allotment stands at approximately Rs. 14.90 crore.

The rights issue, which was open from May 25, 2026, to June 4, 2026, has now been officially concluded with the Board of Directors approving the allotment on June 6, 2026. This action was carried out in coordination with the Registrar to the issue and BSE Limited.

Why this matters

This successful rights issue has directly increased Steelco Gujarat's paid-up equity share capital. The capital has grown from Rs. 4.97 crore (49,66,012 shares) to Rs. 6.30 crore (62,96,072 shares) following the allotment of 13,30,060 new shares. This expansion of the equity base was a key objective of the rights issue.

The backstory

The company had announced the rights issue to raise capital. The Letter of Offer detailing the terms, including the price and the number of shares, was issued on May 9, 2026. The subscription period allowed eligible shareholders and potential investors to participate.

What changes now

With the allotment complete, the rights issue process is formally over. The company now holds the increased paid-up capital. Shareholders who participated will see the new shares reflected in their accounts. The focus will shift to the company's deployment of these newly acquired funds for its business objectives.

Risks to watch

While the capital raise was successful, investors should monitor how effectively Steelco Gujarat utilizes these funds to generate future growth and returns. Any deviations from stated objectives or poor execution could pose a risk.

Peer comparison

(No peer comparison data available in the filing).

Context metrics (time-bound)

• Rights Issue Size: 13,30,060 Equity Shares
• Issue Price: Rs. 112 per share
• Premium per Share: Rs. 102
• Total Funds Raised: ₹14.90 crore
• Pre-Allotment Paid-up Equity Capital: ₹4.97 crore
• Post-Allotment Paid-up Equity Capital: ₹6.30 crore
• Rights Issue Window: May 25, 2026 - June 4, 2026
• Allotment Date: June 6, 2026

What to track next

Investors should track future financial reports from Steelco Gujarat for updates on how the Rs. 14.90 crore raised is being utilized. Performance metrics and strategic announcements related to the fund deployment will be key indicators.