Padam Cotton Yarns Rights Issue 2026: Dates, Price, Ratio

What the company announced

Padam Cotton Yarns Ltd has announced a rights issue to raise funds, offering eligible shareholders the chance to apply for additional equity shares. The company has set the rights issue price at ₹2.07 per equity share, with a face value of ₹1 per share. The entitlement ratio is 7:10, which means shareholders can apply for 7 rights shares for every 10 equity shares held on the record date. The record date for determining eligibility is February 24, 2026. The issue is listed on BSE, where the company trades under the scrip code 531395. The ISIN referenced in the company details is INE448D01025.

Key dates investors tracked

Multiple timelines were shared across updates around the issue, including the record date and the issue window. One schedule lists the rights issue opening date as March 2, 2026 and the revised closing date as March 13, 2026. The closing date was extended from March 9, 2026 to March 13, 2026 following a board decision dated March 9, 2026. The last date to buy shares to be eligible for rights entitlement was stated as February 23, 2026, with the record date on February 24, 2026. The last date for on-market renunciation was stated as March 4, 2026. The basis of allotment and allotment date were indicated as March 16, 2026, followed by credit of equity shares on March 17, 2026 and listing on March 18, 2026.

Rights entitlement: what 7:10 means

The rights ratio of 7:10 is the core term for existing shareholders evaluating their eligibility. It means that for every 10 equity shares held as of the record date, a shareholder is entitled to apply for 7 additional shares under the rights issue. The rights issue price was stated as ₹2.07 per equity share on the record date. A pre-issue description also noted that ₹2.07 includes a premium of ₹1.07 per share over the ₹1 face value. Rights issues generally allow existing investors to maintain their holding percentage if they choose to participate. The record date is important because only shareholders on the company’s register (as of that date) are eligible for the entitlement.

Offer size and share count: figures mentioned in disclosures

The article data includes multiple figures for the size of the fundraise. One update said the company planned to raise up to ₹32.40 crore via a rights issue (also described as 324 million rupees). Separately, offer details stated an issue size of approximately ₹18.71 crore and an equity issuance of 9,03,70,000 shares (9.03 crore equity shares) at ₹2.07 per share. A later allotment update said the company completed allotment of 9.03 crore shares worth ₹1,870.659 lakh, which converts to ₹18.70659 crore. Another pre-issue advertisement line described the issue as “up to ₹1,870.66 crore” while also referencing 9.03 crore shares at ₹2.07 each. Readers tracking the issue typically cross-check the share count and price with the stated issue size in the final basis of allotment and company filings.

Timeline table: key dates published for the issue

How to apply: ASBA and registrar route

The application methods mentioned for the rights issue included net banking through ASBA and applying via the registrar’s website using the R-WAP facility. The pre-issue note also stated that allotments would be in dematerialised form only. For investors, this typically means ensuring their demat account details are correct and that the bank account linked to ASBA has sufficient balance during the application window. The revised schedule following the extension kept the allotment date as March 16, 2026 and listing on March 18, 2026. The last date to submit the Common Application Form (CAF) along with the application amount was stated as Friday, March 13, 2026, after the extension.

Board actions and corporate updates around the issue

The board also approved an increase in authorised capital from ₹22 crore to ₹49 crore for future fundraising, according to the provided updates. The company appointed M/s Piyush Kothari & Associates as statutory auditors for four years. It also decided to convene the 32nd Annual General Meeting on September 30, 2026. Alongside fundraising, the board ratified changes in directorship as referenced in the article data. These corporate actions were disclosed in the same cluster of updates as the rights issue announcements and schedules.

Monitoring agency note: utilisation deviation reported

A monitoring agency update stated there was a 15.23% deviation, quantified as ₹2.85 crore, in the utilisation of rights issue funds for Q1 FY27. The note said this included unverified issue-related expenses and interest-bearing loans given to parties not disclosed as objects in the offer document. Such monitoring reports are typically read alongside the company’s stated objects of the issue and periodic utilisation disclosures. The mention of a quantified deviation is a data point investors may track in subsequent filings and explanations. The article data did not include additional detail on the final resolution of the deviation.

Company profile and key identifiers

Padam Cotton Yarns Ltd is described as being engaged in manufacturing of cotton yarn, with additional engagement in consulting. The company address listed is 196, 1st Floor, G T Road, Opp. Red Cross Market, Karnal, Haryana 132001. The telephone number provided was 0184-9998865217 and the email listed was cspcyl6@gmail.com. The website referenced was http://www.padamcotton.com (also shown as https://www.padamcotton.com/ in another line). The registrar information mentioned Beetal Financial & Computer Services Pvt. Ltd, with an address at 9 Madangir, Behind Local Shopping Centre, New Delhi 110062, and phone numbers including 011-29961281, 29961282, 29961283.

Why the rights issue mattered for shareholders

For existing shareholders, the rights issue terms were defined by the February 24, 2026 record date, the 7:10 entitlement ratio, and the ₹2.07 issue price. The extension of the closing date to March 13, 2026 gave additional time to decide whether to subscribe, renounce, or let the entitlement lapse. The allotment and listing dates in mid-March 2026 set expectations for when new shares would be credited and become tradable. Updates also noted that the company’s paid-up capital expanded from ₹12.91 crore to ₹21.95 crore after the allotment approved on March 16, 2026. Investors often read these developments together with corporate actions such as authorised capital expansion and post-issue utilisation monitoring.

Conclusion

Padam Cotton Yarns’ rights issue was structured around a February 24, 2026 record date, a 7:10 entitlement, and an issue price of ₹2.07 per share, with the closing date extended to March 13, 2026. The company subsequently approved allotment on March 16, 2026, followed by credit and listing dates in the same week. Separately, the company also disclosed an authorised capital increase to ₹49 crore and a monitoring agency note reporting a ₹2.85 crore deviation in fund utilisation for Q1 FY27. Further clarity for investors typically comes through the company’s subsequent filings, utilisation statements, and AGM updates scheduled for September 30, 2026.