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Gravity India Limited's Rights Issue Committee has formally approved a plan to raise capital through a rights issue. The company will offer 6,90,14,950 equity shares at a price of ₹10.00 per share, aiming to raise approximately ₹69.01 crore, with the total not exceeding ₹70.00 crore. This move, the company's first rights issue since 2018, is intended to fund its objectives under the Companies Act, 2013. The record date for determining eligible shareholders who can subscribe to these new shares has been set for April 8, 2026. The rights issue is scheduled to open on April 27, 2026, and close on May 25, 2026.
This capital infusion could provide a significant financial boost for Gravity India, potentially aiding its operations or strategic initiatives. For existing shareholders, the rights issue offers an opportunity to increase their stake, but it also carries a risk of dilution if they do not subscribe to their entitled shares. The success of the rights issue will be crucial, especially given the company's micro-cap status and historical financial performance, influencing its financial structure and future growth prospects.
Gravity India, a textile manufacturer established in 1987, has faced challenges including poor sales growth and a negative Return on Equity (ROE) of -65.58% on a trailing twelve-month basis as of December 31, 2025. The company also has a history of regulatory issues; in 2010, SEBI imposed a ₹1 Lakh penalty for alleged market manipulation. Earlier in 2026, a planned Rights Issue Committee meeting was cancelled pending stock exchange approval, but the company later received in-principle approval from BSE Limited on March 16, 2026, paving the way for this capital raise.
If fully subscribed, the rights issue will significantly increase Gravity India's total outstanding equity shares, potentially from around 90 lakh shares to over 7.8 crore shares. This expansion of its equity base provides additional capital, though existing shareholders who do not participate will see their ownership percentage diluted. Investors will be watching for potential subscription risks, the impact of dilution, and how current market sentiment towards micro-cap stocks influences participation, alongside the company's past performance and regulatory history.
Operating in the competitive textile sector, Gravity India's market cap is around ₹12 crore with TTM revenue of ₹1.97 crore (FY25). This places it among smaller players like Digjam Ltd., which reported net sales of ₹62 crore and a profit of ₹36 crore as of March 2025. In contrast, larger integrated manufacturer Vardhman Textiles Ltd. is undertaking a ₹2,000 crore investment plan. As of December 31, 2025, Gravity India had a trailing twelve-month revenue of $9.2 million and a Net Income of $657K.
Key developments to track include the official filing of offer documents with BSE Limited and SEBI, shareholder response during the subscription period, and the company's subsequent utilization of the raised funds and their impact on financial performance.