Suraj Industries Forfeits 1.37 Lakh Rights Shares for Non-Payment

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AuthorAarav Shah|Published at:
Suraj Industries Forfeits 1.37 Lakh Rights Shares for Non-Payment
Overview

Suraj Industries Limited has converted 30,657 partly paid-up rights equity shares to a higher paid-up value of ₹5. The company also approved the forfeiture of 1,37,972 shares due to non-payment of the first call money, totaling ₹13.80 lakh. This corporate action follows the payment period for the rights issue's first call.

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Suraj Industries Updates on Rights Issue Share Conversions and Forfeitures

Suraj Industries Limited has completed significant corporate actions related to its rights issue, following the payment deadline for the first call money. The company has converted 30,657 partly paid-up rights equity shares to a higher paid-up value and approved the forfeiture of 1,37,972 shares due to non-payment.

Share Conversion Details

The 30,657 shares converted will now have a paid-up value of ₹5 per share, an increase from their previous ₹2.5 paid-up value. These shares are now progressing towards securing the necessary listing and trading approvals.

Share Forfeiture Details

In parallel, Suraj Industries approved the forfeiture of 1,37,972 partly paid-up rights equity shares. This action was taken because these shareholders failed to meet the first call money payment demand. The total unpaid first call money on these forfeited shares amounted to ₹13.80 lakh.

Financial Context of the Rights Issue

The company, a participant in the iron and steel sector, had initiated this rights issue to raise capital. Shareholders were mandated to pay the first call money by April 3, 2026. As of April 13, 2026, on a standalone basis, the initial unpaid first call money on rights shares was ₹16.86 lakh. The company received ₹3.07 lakh in payments, with the remaining ₹13.80 lakh related to the forfeited shares.

Investor Commitment and Company Risks

The forfeiture underscores potential financial challenges faced by some investors, leading to their investment being forfeited. For the company, this event highlights its adherence to the rights issue terms. Suraj Industries also faces execution risks related to completing the formalities and obtaining listing and trading approvals for the successfully converted shares.

Industry Context

While Suraj Industries is involved in the manufacturing and trading of iron and steel products, with industry peers including SAIL, JSW Steel, and Tata Steel, this specific corporate action concerning rights issue share forfeiture is an internal company development. It is not typically used as a metric for sector-wide peer performance comparison.

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