Tuni Textile Mills Ltd has set the terms for its rights issue, aiming to raise Rs 48.99 crore. Shareholders will receive 15 shares for every 4 held at an issue price of Re 1 per share. The record date is fixed for September 16, 2026.
Tuni Textile Mills Finalizes Rs 49 Crore Rights Issue Terms
Total issue size of Rs 48.99 crore with 48.98 crore equity shares to be offered at Re 1 per share.
Reader Takeaway: Existing shareholders get a 15:4 entitlement ratio, though the issuance will significantly dilute the current equity base.
What just happened
Tuni Textile Mills Ltd has officially approved the terms for its upcoming rights issue. The company intends to raise Rs 48.99 crore by offering 48,98,66,250 equity shares to existing shareholders. Each share is priced at a face value of Re 1.
Why this matters
The rights issue offers existing investors the opportunity to increase their stake at a price of Re 1 per share. However, the move significantly expands the company's capital structure. Post-issue, the total number of outstanding shares is expected to rise from 13.06 crore to 62.05 crore, which may impact earnings per share for current holders.
Important Dates
- Record Date: September 16, 2026
- Issue Opens: September 28, 2026
- Renunciation Ends: October 20, 2026
- Issue Closes: October 26, 2026
What changes now
Investors must hold shares as of the September 16 record date to be eligible for the entitlement. The company has clarified that fractional entitlements will be ignored, though shareholders in this position may apply for extra shares subject to availability. Investors are advised to examine the Letter of Offer to understand how the company plans to deploy the newly raised capital.