Indian Emulsifiers opens Rs 49.4996994 crore rights issue

Indian Emulsifiers Limited will open a one-for-one rights issue on November 16, 2026, offering up to 1,83,33,222 fully paid equity shares at Rs 27 each for an aggregate Rs 49.4996994 crore, assuming full subscription. Eligible shareholders must apply through the Applications Supported by Blocked Amount process and pay the full Rs 27 per share when applying.

What are Indian Emulsifiers’ rights issue terms?

Indian Emulsifiers is offering one rights share for every one equity share held by eligible shareholders on the October 27, 2026 record date. The offer comprises up to 1,83,33,222 fully paid equity shares with a face value of Rs 10 each, at an issue price of Rs 27 per rights share.

The issue price is 2.7 times the Rs 10 face value, and the maximum advertised size is Rs 49.4996994 crore, assuming full subscription. The company’s October 21, 2026 intimation had referred to an aggregate amount not exceeding Rs 51 crore, while the November 11 advertisement specifies the share count and a lower aggregate of Rs 49.4996994 crore.

Indian Emulsifiers states that its equity shares are listed on the National Stock Exchange of India Limited, or NSE, which is the designated stock exchange for the issue. NSE issued in-principle approval for listing the rights shares in a letter dated August 27, 2026, although the advertisement says this does not certify the correctness or completeness of the letter of offer.

The advertisement also says no specific investor has been recognised for allotment of an undersubscribed portion. Promoter Yash Tikekar has confirmed that he will not renounce rights entitlements in favour of a specific investor, while the notice does not disclose any subscription guarantee for unsubscribed shares.

When can Indian Emulsifiers shareholders apply or renounce rights?

Indian Emulsifiers’ issue will open on Monday, November 16, 2026 and close on Tuesday, December 1, 2026. The last date for on-market renunciation is Wednesday, November 25, 2026, giving holders nine calendar days from the opening date to sell rights entitlements through the market.

The board or an authorised committee may extend the issue period, but it cannot exceed 30 days from the November 16 opening date, including that date. The company also says an applicant cannot withdraw an application after the December 1 closing date.

Indian Emulsifiers completed dispatch of its letter of offer dated October 21, 2026, application form and rights-entitlement letter on November 2, 2026. The filing says materials were sent electronically to shareholders with valid registered email addresses, while physical dispatch to Indian addresses was made on a reasonable-effort basis where no email address was available.

Holders can renounce rights entitlements wholly or partly through an on-market sale or an off-market transfer. For an off-market transfer, the entitlement must be credited to the renouncee’s demat account on or before December 1; rights entitlements are to be admitted for trading under ISIN INE0RRU20024, subject to required approvals.

How do Indian Emulsifiers shareholders pay for rights shares?

Indian Emulsifiers requires payment of 100% of the Rs 27 issue price when an application is made. The advertisement does not disclose any later call for payment, so the full subscription amount for each rights share must be blocked at application.

Applications must use Applications Supported by Blocked Amount, or ASBA, under which an applicant authorises a Self Certified Syndicate Bank, or SCSB, to block application money in an ASBA-enabled bank account. Applications can be submitted at designated SCSB branches or electronically where an SCSB provides that facility.

Eligible shareholders in India that did not receive an application form can apply on plain paper using the ASBA route. The plain-paper application must reach the designated SCSB branch by December 1, must contain the prescribed shareholder, demat-account and ASBA-account details, and cannot be used by an eligible shareholder that has not provided an Indian address.

Indian Emulsifiers says a shareholder applying on plain paper cannot renounce rights entitlements and should not use a later-received application form for renunciation. Multiple applications linked to the same demat account or entitlements, including an application form submitted alongside a plain-paper application, may be rejected; HDFC Bank Limited is named as escrow collection bank, allotment account bank and refund banker.

Who can receive Indian Emulsifiers rights shares?

Indian Emulsifiers will credit both rights entitlements and allotted rights shares only in dematerialised form. The advertisement says eligible equity shareholders holding shares in demat form on the October 27, 2026 record date may apply during the issue period, subject to the offer conditions.

A credit of rights entitlements to a demat account does not itself result in an allotment. A holder must apply on or before December 1 and ensure that the required application money is blocked through ASBA, distinguishing a tradable entitlement from a completed subscription.

Shareholders whose entitlements are credited to the rights suspense escrow account must submit documents, including a self-attested Permanent Account Number and a client master sheet, two working days before December 1. Indian Emulsifiers says this information is needed to transfer entitlements to the relevant demat account at least one day before the issue closes.

The company also notes that its shares trade on NSE’s small and medium enterprise platform in market lots of 500 shares. A rights allotment can leave a shareholder with an odd lot, meaning a holding not in multiples of 500 that may not be tradeable unless consolidated into a marketable lot or the trading-lot size changes.

Conclusion

Indian Emulsifiers has set a fully paid one-for-one rights offer at Rs 27 per share, with up to 1,83,33,222 shares available and a maximum advertised size of Rs 49.4996994 crore. The detailed advertisement reduces the stated maximum from the Rs 51 crore ceiling mentioned in the October 21 intimation and establishes the payment, entitlement and renunciation mechanics.

The next event is the November 16, 2026 opening, followed by the November 25 deadline for on-market renunciation and the December 1 closing date. Investors should watch whether Indian Emulsifiers’ board uses its disclosed authority to extend the issue period, which cannot run beyond 30 days from the opening date.