Rights Issues 2025: Dates, Prices & Key Details

Table of Contents

Introduction

For seasoned investors and beginners alike, corporate actions like rights issues can be game-changing opportunities. In simple terms, a rights issue is when a company offers its existing shareholders the chance to buy additional shares — usually at a price lower than the current market price.

Unlike IPOs, which are open to the public, rights issues are exclusive. Only those who already own shares as of a specific record date are eligible. And in 2025, the Indian stock market is buzzing with multiple rights issues from diverse sectors — ranging from logistics and renewable energy to pharmaceuticals and retail.

This blog will walk you through:

What a rights issue is and how it works.
Why companies opt for this method of fundraising.
Upcoming rights issues in 2025 with detailed dates, prices, and ratios.
Key highlights of major rights issues in August 2025.
How you can participate and the factors you should consider before investing.

By the end, you’ll be equipped to decide whether Rights Issues 2025 in India fit into your investment strategy.

What is a Rights Issue & How It Works

A rights issue is a corporate offer where existing shareholders are given the right, but not the obligation, to buy additional shares in proportion to their current holdings.

Key characteristics:

Eligibility: Determined by the record date — only shareholders holding shares on this date can participate.
Discounted Price: Usually lower than the current market price (CMP), giving shareholders a cost advantage.
Proportionate Offer: Expressed as a ratio — for example, 3:8 means 3 new shares for every 8 held.
Transferable Rights: Shareholders can trade these rights entitlements (RE) in the stock market if they choose not to subscribe. This process is called renunciation.

Difference from other corporate actions:

Versus IPO: IPOs are open to everyone; rights issues are exclusive to existing shareholders.
Versus Bonus Issue: Bonus shares are free; rights issues require payment, albeit at a discounted rate.

Why Companies Opt for Rights Issues

Rights issues aren’t random — they serve strategic business purposes. Common reasons include:

Raising Capital for Expansion
- For example, renewable energy companies might need funds to set up new plants.
Debt Reduction
- Some companies use rights proceeds to clear high-cost borrowings, strengthening their balance sheets.
Funding Working Capital Needs
- Retail or manufacturing companies often require funds to maintain inventory or manage seasonal demand spikes.
Strategic Projects or Acquisitions
- Logistics companies like Mahindra Logistics might raise funds to expand warehouse capacity or invest in tech infrastructure.

Upcoming Rights Issues 2025 – Snapshot Table

Here’s a quick view of some major and notable rights issues scheduled in 2025 (data as per August updates):

Company Name	Record Date	Issue Open	Renunciation Ends	Issue Close	Issue Price (₹)	Issue Size (₹ Cr)	CMP (₹)	CMP of RE (₹)	Ratio
Davangere Sugar Co. Ltd	Aug 06, 2025	Aug 14, 2025	Aug 25, 2025	Aug 29, 2025	3.05	149.22	3.18	—	13:25
Cyber Media (India) Ltd	Aug 01, 2025	Aug 18, 2025	Aug 19, 2025	Aug 29, 2025	15.80	9.90	16.05	—	2:5
Kilitch Drugs (India) Ltd	Jul 15, 2025	Jul 23, 2025	Aug 18, 2025	Aug 21, 2025	357.00	49.93	445.00	71.00	2:23
Inox Wind Ltd	Jul 29, 2025	Aug 06, 2025	Aug 14, 2025	Aug 20, 2025	120.00	1,249.33	141.70	21.53	5:78
Praxis Home Retail Ltd	Mar 20, 2025	Aug 07, 2025	Aug 12, 2025	Aug 18, 2025	10.00	49.58	10.23	0.14	11:30
Mahindra Logistics Ltd	Jul 23, 2025	Jul 31, 2025	Aug 11, 2025	Aug 14, 2025	277.00	749.27	332.75	40.81	3:8
Zodiac Ventures Ltd	Jul 18, 2025	Jul 31, 2025	Aug 08, 2025	Aug 14, 2025	6.30	28.42	8.92	0.75	6:5
JMJ Fintech Ltd	Jul 11, 2025	Jul 18, 2025	Aug 11, 2025	Aug 14, 2025	10.50	26.88	14.43	2.46	2:1
Indian Infotech & Software Ltd	Jul 28, 2025	Aug 06, 2025	Aug 08, 2025	Aug 13, 2025	1.10	46.46	1.41	0.03	1:3
Jtekt India Ltd	Jul 25, 2025	Aug 04, 2025	Aug 07, 2025	Aug 12, 2025	108.10	249.89	126.65	15.99	1:11

Spotlight: Major Rights Issues in August 2025

Mahindra Logistics Limited

Issue Price: ₹277 (CMP ₹332.75) — a discount of ~17%.
Issue Size: ₹749.27 crore.
Ratio: 3:8.
Objective: Likely to fund capacity expansion in warehousing and tech-driven supply chain solutions.
Investor Takeaway: Backed by the Mahindra Group, strong brand trust. The discount makes it attractive, but logistics sector margins need monitoring.

Inox Wind Limited

Issue Price: ₹120 (CMP ₹141.70) — discount of ~15%.
Issue Size: Massive ₹1,249.33 crore.
Ratio: 5:78.
Objective: Debt repayment and expansion in renewable energy projects.
Investor Takeaway: Large fundraise shows aggressive growth plans, but renewable energy sector volatility should be considered.

Kilitch Drugs (India) Ltd

Issue Price: ₹357 (CMP ₹445) — discount of ~20%.
Issue Size: ₹49.93 crore.
Ratio: 2:23.
Objective: Working capital and overseas expansion in pharma manufacturing.
Investor Takeaway: Strong discount but relatively small issue size; niche pharma play with global reach.

How to Participate in a Rights Issue

Participating is simpler than most think. Here’s a quick step-by-step guide:

Check Your Eligibility
- You must own the company’s shares on the record date.
Monitor Communication
- Companies send the Letter of Offer via email or post with all details.
Apply via ASBA or RTA Portal
- Most investors use net banking’s ASBA (Application Supported by Blocked Amount) feature.
Pay for the Shares
- Amount will be debited as per the number of shares applied for.
Renunciation Option
- If you don’t want to subscribe, you can sell the Rights Entitlement (RE) in the market before the renunciation deadline.

Risks and Considerations Before Applying

Dilution Risk: If you don’t participate, your shareholding percentage reduces.
Company Fundamentals: A rights issue in a loss-making company might signal financial stress.
Sector Outlook: Check the growth prospects in the company’s industry.
Price vs. Value: Discounted price doesn’t always mean it’s a good investment; compare with earnings and growth plans.

Why Rights Issues Are Attractive in 2025

The 2025 rights issue wave in India shows a mix of large-cap and mid-cap companies tapping shareholders for funds. With market indices at record highs, companies see this as the perfect time to raise equity without heavy borrowing. For investors, it’s a chance to:

Buy at a lower-than-market price.
Increase stake in companies they trust.
Benefit from potential price appreciation after expansion plans are funded.

Conclusion

Rights issues are a double-edged sword — they can be a great opportunity to invest more in a company you believe in, at a discount, but they also carry risks if the company’s future performance is uncertain.

In 2025, investors in India have an impressive lineup of rights issues to consider. From Mahindra Logistics and Inox Wind to niche players like Kilitch Drugs, there’s diversity in sectors, sizes, and objectives.

If you’re holding shares in any of these companies, study the offer documents, compare the issue price with the company’s fundamentals, and decide whether to subscribe, renounce, or let it lapse.

For smart investors, Rights Issues 2025 in India could be a well-timed opportunity — provided you do your homework before writing that cheque.

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