Eco Hotels Issues Second Payment Call for Rights Shares

Eco Hotels and Resorts Limited has issued a second payment call for its rights shares, requesting ₹3.80 per share. This notice demands a total of approximately ₹48.93 crore from holders of 1,28,76,808 rights equity shares. Shareholders must pay this amount by April 21, 2026. Failure to comply risks forfeiture of shares and money already paid, with interest charged on late payments.

The company has set April 21, 2026, as the deadline for shareholders to pay ₹3.80 per share. This move is intended to collect approximately ₹48.93 crore from the holders of 1,28,76,808 rights equity shares. The record date for identifying eligible shareholders was March 19, 2026. Trading in these partly paid-up equity shares has been suspended on the stock exchange since March 18, 2026.

This notice directly impacts shareholders holding these rights shares, requiring them to pay the additional sum to retain their investment. Failing to meet this payment deadline carries severe consequences, including the potential loss of all amounts already paid for these shares.

This second call stems from the rights issue launched by Eco Hotels in 2025. The company initially offered 1,28,76,808 equity shares at ₹15.20 each in a 1:4 ratio. That issue was oversubscribed 1.60 times, raising approximately ₹19.57 crore. Shareholders initially paid ₹3.80 per share on application, with the remainder due in later calls.

Financially, Eco Hotels has faced difficulties. Despite reporting revenue growth, partly due to new property launches in Q3 FY26, the company continues to incur operating losses and negative net profit. The company's stock has also declined significantly, trading near its 52-week low of ₹10.72 as of March 24, 2026, signaling investor concerns about its financial health.

Key actions and consequences for shareholders:

• Shareholders must pay the ₹3.80 per share call money by April 21, 2026, to avoid losing their shares.
• Failure to pay by the deadline means forfeiture of the rights equity shares and any money already paid.
• Payments made after April 21, 2026, will incur 10% annual interest.
• The company can deduct unpaid call amounts and interest from future dividends.

Potential risks include:

• A key risk is a significant number of shareholders not meeting the payment deadline, leading to share forfeiture and potentially diluting company capital.
• Ongoing operating losses and the need for capital signal continued financial strain for Eco Hotels.
• The stock's sharp decline and proximity to 52-week lows suggest weak investor sentiment, which could be further affected by how shareholders respond to this call.

Eco Hotels operates in India's competitive hospitality sector, with peers including The Indian Hotels Company Ltd, EIH Ltd (Oberoi Group), and mid-market chains like Lemon Tree Hotels. For instance, The Indian Hotels Company Ltd has also used rights issues, such as one in November 2021, to fund growth and strengthen its finances.

Key figures for this call include an approximate total amount due of ₹48.93 crore for 1,28,76,808 rights equity shares, with the second call amount set at ₹3.80 per share. The payment period runs from April 07, 2026, to April 21, 2026. Trading in these shares has been suspended since March 18, 2026.

Investors will be watching shareholder participation in meeting the payment deadline, the total capital raised, and how any infused funds affect the company's financial health. Announcements regarding the resumption of trading for these rights equity shares and any indications of future calls will also be important to track.