Yarn Syndicate Initiates Final Call for Rights Issue Shares

Yarn Syndicate Limited announced it is collecting the First and Final Call Money of ₹13.50 per partly paid-up equity share.

Reader Takeaway: Investors must pay by June 22, 2026, or risk losing their shares and initial investment.

What just happened

Yarn Syndicate Limited has begun the process to collect the First and Final Call Money amounting to ₹13.50 per partly paid-up equity share. This payment is the final step to make these shares fully paid-up, following the company's rights issue in 2024. The payment includes a ₹5.00 face value component and an ₹8.50 premium component.

Why this matters

For shareholders holding these partly paid-up shares, this is a critical deadline. Failure to pay the ₹13.50 by June 22, 2026, can lead to the forfeiture of their shares, including the ₹13.50 already paid at allotment in February 2024. This action finalizes the capital raised from the rights issue.

The backstory

The company had initially issued these shares via a rights issue in 2024. At the time of allotment in February 2024, shareholders paid ₹13.50 per share. The original rights issue price was ₹27.00 per share, with the remaining ₹13.50 now being called for.

What changes now

Upon successful payment, the partly paid-up equity shares will be converted into fully paid-up equity shares. This conversion will impact the shareholding structure and the total equity base of the company.

Risks to watch

The primary risk for investors is the forfeiture of their shares if the final call money is not paid by the deadline. Additionally, trading in the partly paid-up shares (ISIN: IN9564C01011) was suspended from May 15, 2026.

Payment Process

Shareholders must complete the payment between June 08, 2026, and June 22, 2026. Accepted payment methods include Online ASBA, Physical ASBA via Self-Certified Syndicate Banks (SCSBs), or through linked 3-in-1 trading-demat-bank accounts. No part payments will be accepted.

What to track next

Investors should closely monitor the company's announcements regarding the finalization of its capital structure post this payment collection. The conversion of shares to fully paid-up status will be a key development.