Mihika Industries Limited seeks ₹90 crore in 9-for-1 rights issue

Mihika Industries Limited is seeking up to Rs 90 crore through a partly paid 9-for-1 rights issue at Rs 10 per share, an offer that would increase its equity shares from 1 crore to 10 crore if fully subscribed, allotted and paid. The issue is scheduled to open on November 19, 2026 and close on December 4, 2026.

What are Mihika Industries’ rights issue terms?

Mihika Industries is offering up to 9 crore rights equity shares, with eligible holders entitled to nine new shares for every one share held on the November 6, 2026 record date. The issue price is Rs 10 per rights share, equal to its Rs 10 face value, with no premium, and the maximum gross proceeds are Rs 90 crore.

Applicants must pay Rs 2.50 per rights share at application, representing 25% of the issue price. The remaining Rs 7.50 per share will be payable in three calls of Rs 2.50 each, scheduled on or about January 11 to January 21, February 19 to March 2, and April 1 to April 12, 2027.

Mihika Industries’ board authorised the issue on July 17, 2026, and the Rights Issue Committee approved the entitlement ratio, record date and payment schedule on November 2, 2026. The company states that rights shares will rank pari passu, meaning equally in all respects, with existing equity shares.

How much dilution could Mihika Industries shareholders face?

Mihika Industries’ outstanding equity base could rise tenfold, from 1 crore shares before the offer to 10 crore shares after full subscription, allotment and receipt of all call money. A shareholder who does not subscribe would retain the same number of shares but hold a lower percentage of the enlarged equity capital.

The 9-for-1 entitlement permits each eligible shareholder to buy nine shares for every existing share, while on-market renunciation is available until December 1, 2026. Rights entitlements not exercised by the December 4, 2026 closing date will lapse and be extinguished, including rights acquired in the market where the purchaser does not submit an application.

Veggie Fest Foods Private Limited, Mihika Industries’ promoter, held 47,14,190 shares, or 47.14%, as of the letter of offer date. The promoter told the company on July 17, 2026 that it may not subscribe fully to its entitlement and may renounce rights through the stock exchange, so its eventual shareholding could change.

How will Mihika Industries use the rights issue proceeds?

Mihika Industries proposes to allocate up to Rs 80.65 crore of net proceeds to existing and incremental working-capital needs and up to Rs 8.55 crore to general corporate purposes. After estimated issue expenses of up to Rs 80 lakh, the company expects net proceeds of up to Rs 89.20 crore, assuming full subscription and allotment.

The company plans to deploy the Rs 89.20 crore of net proceeds in fiscal 2027. Its stated working-capital requirement relates to procurement, inventory, trade receivables and payments to farmers, suppliers, traders and other procurement partners in its agricultural produce trading operations.

Management estimates trade receivables of Rs 55.4458 crore at March 31, 2027, compared with Rs 1.5713 crore at March 31, 2026, while inventory is projected at Rs 20.0031 crore, compared with Rs 2.3055 crore. Mihika Industries says its funding requirement and deployment plan have not been appraised by a bank, financial institution or independent agency.

When must Mihika Industries investors pay for the shares?

Mihika Industries investors must pay Rs 2.50 per allotted rights share on application and a further Rs 7.50 through three scheduled calls ending on or about April 12, 2027. The full commitment for each allotted share is therefore Rs 10, rather than only the initial application amount.

The issue is scheduled to open on November 19, 2026 and close on December 4, 2026, with rights entitlements due to be credited by November 9. The company expects to finalise the basis of allotment on or about December 7 and credit and list the shares on or about December 8, although it describes these dates as indicative and subject to BSE Limited approval.

No application may be withdrawn after the December 4 closing date. Physical shareholders that have not given demat account details must provide them by December 1, 2026 to facilitate credit of rights entitlements, while the offer document also sets out an application route for eligible physical shareholders during the issue period.

What happens if Mihika Industries does not receive minimum subscription?

Mihika Industries states that the rights issue is subject to the minimum-subscription requirement under the Securities and Exchange Board of India’s Issue of Capital and Disclosure Requirements regulations. If minimum subscription is not received, the company says it must refund all application money within four days of the issue closing date.

If the offer remains unsubscribed or minimum subscription is not achieved, the board may dispose of the unsubscribed portion in the interests of the company and shareholders, subject to applicable law. The issue is not underwritten, so Mihika Industries has not entered an arrangement guaranteeing subscription for the proposed 9 crore shares.

Mihika Industries has appointed Brickworks Rating India Private Limited to monitor the use of gross proceeds. The letter of offer says it was filed with BSE Limited rather than the regulator because it falls below a Rs 50 crore threshold, although the same document states maximum issue proceeds of Rs 90 crore.

Conclusion

Mihika Industries is proposing a Rs 90 crore capital raise that could add 9 crore shares to its existing 1 crore-share base. The issue’s principal proposed use is Rs 80.65 crore of working capital, against management’s estimate that the working-capital gap will rise from Rs 3.8823 crore at March 31, 2026 to Rs 83.6105 crore at March 31, 2027.

The next disclosed milestones are the November 6, 2026 record date, the November 19 to December 4 subscription period and the three calls scheduled through April 12, 2027. Investors will also be able to assess the final subscription result, the December 7 allotment process and whether the 47.14% promoter shareholder exercises or renounces its entitlement.