Zodiac-JRD-MKJ rights issue targets Rs 40 crore in 2026

Zodiac-JRD-MKJ Limited plans to raise up to Rs 40 crore through a 145-for-100 rights issue at Rs 25 per share, which would increase its outstanding equity shares from 1,09,75,625 to 2,69,75,625 if fully subscribed. The issue is scheduled to open on November 19, 2026, following a November 11, 2026 record date.

What are Zodiac-JRD-MKJ’s rights issue terms?

Zodiac-JRD-MKJ is offering up to 145 rights equity shares for every 100 fully paid equity shares held on the November 11, 2026 record date. Each rights share has a face value of Rs 10 and an issue price of Rs 25, including a premium of Rs 15. A shareholder with exactly 100 eligible shares would be entitled to apply for 145 rights shares for Rs 3,625.

The company proposes to issue up to 1,60,00,000 fully paid shares for cash, with the full Rs 25 payable on application rather than through later calls. The new shares will rank pari passu with existing shares, meaning they will rank equally in all respects. The company has stated an ex-rights price of Rs 29.30 per share under the Securities and Exchange Board of India (SEBI) Takeover Regulations.

Where a shareholder holds fewer than 100 shares, or a holding is not in a multiple of 100, the fractional portion of the entitlement will be ignored. However, Zodiac-JRD-MKJ says shareholders whose fractions are ignored may receive preference for one additional share if they apply for shares beyond their entitlement. The issue was authorised by the board on August 6, 2026, while the terms, record date and timing were approved on November 4, 2026.

The proposed issue of 1,60,00,000 shares exceeds Zodiac-JRD-MKJ’s pre-issue base of 1,09,75,625 shares. On full subscription, the share count would rise by about 146%, while the company’s authorised capital of 2,70,00,000 shares would leave only 24,375 authorised shares unissued after the allotment.

When can Zodiac-JRD-MKJ shareholders apply or renounce rights?

Zodiac-JRD-MKJ’s rights issue is scheduled to open on November 19, 2026 and close on December 3, 2026, while the last date for on-market renunciation is November 30, 2026. Rights entitlements are scheduled to be credited by November 12, 2026, and the company expects to finalise the basis of allotment on or about December 4, 2026.

The indicative schedule provides for allotment on or about December 4, credit of rights shares on or about December 7, and listing on or about December 8, 2026. The board or rights issue committee may extend the issue period, but the extension cannot make the period exceed 30 days from the opening date, including November 19. Applications cannot be withdrawn after the issue closes.

An entitlement that is not exercised by the December 3 closing date will lapse and be extinguished, Zodiac-JRD-MKJ states. This also applies to an entitlement purchased in the market: if the buyer does not apply for the underlying shares before the close, no shares will be credited and the buyer could lose the amount paid for the entitlement.

Holders of physical shares on the record date must provide demat account details to the company or its registrar at least two clear working days before 11.30 a.m. Indian Standard Time before the closing date. Their rights entitlement must be credited into a demat account before they can apply. MUFG Intime India Private Limited is the registrar to the issue.

How will Zodiac-JRD-MKJ use the rights issue proceeds?

Zodiac-JRD-MKJ plans to use estimated net proceeds of Rs 37.95 crore in fiscal 2026-27, with Rs 24.50 crore allocated to acquire Aerocom Automotives Private Limited for expansion in automotive components. This allocation represents the largest stated use of funds from the proposed gross proceeds of Rs 40 crore.

Estimated issue-related expenses are Rs 2.05 crore, producing the stated net proceeds of Rs 37.95 crore on full subscription. The other proposed allocations are Rs 5 crore for working-capital requirements, Rs 4 crore for investment in subsidiary VEM Plastic Molding Private Limited, and Rs 4.45 crore for general corporate purposes.

The company says the Rs 4.45 crore proposed for general corporate purposes will not exceed 25% of gross proceeds. Acuite Ratings & Research Limited has been appointed to monitor utilisation of gross proceeds under SEBI regulations, although none of the proposed uses has been financially appraised by a bank, financial institution or other independent agency.

Zodiac-JRD-MKJ says its board may revise its funding requirements and deployment schedule, reallocate proceeds where a shortfall arises, or use unspent funds in subsequent financial years in accordance with applicable law. The company also says any additional funding requirement may be met through internal accruals, further capital infusion, debt arrangements or a combination of those sources.

What do the terms mean for Zodiac-JRD-MKJ’s capital and promoters?

Zodiac-JRD-MKJ does not need to meet a 90% minimum subscription threshold because that requirement is not applicable to this rights issue under the cited SEBI regulations. The issue is not underwritten, and the company does not intend to allot any under-subscribed shares to specific investors, so the final capital raised will depend on applications and the basis of allotment.

The company had no partly paid shares, convertible warrants, other convertible securities, employee stock-option scheme or employee stock-purchase scheme as of the Letter of Offer date. Its shares were fully paid before the offer, and the rights shares will also be fully paid at allotment following payment of Rs 25 per share at application.

Promoter Mudit Sharadkumar Jain has stated that he intends to renounce his entire entitlement in favour of promoter and promoter-group members. Corporate promoters Bluerock Industrial Infrastructure Management LLP and Bluerock Infrastructure Solutions LLP have stated that they intend to subscribe fully to their respective entitlements and may apply for additional shares, subject to takeover, listing and minimum-public-shareholding rules.

Zodiac-JRD-MKJ says the issue will not result in a change in management control under the SEBI Takeover Regulations. It also says it complies with the minimum public shareholding requirement and will continue to do so after the issue. The company must report transactions by promoters and promoter-group members in specified securities between filing of the Letter of Offer and the issue closure within 24 hours to the stock exchanges.

Conclusion

Zodiac-JRD-MKJ’s proposed rights issue would be a substantial expansion of its equity base, adding up to 1,60,00,000 shares to a pre-issue base of 1,09,75,625 shares. The Rs 40 crore gross issue is principally directed towards the proposed Aerocom Automotives acquisition, with Rs 9 crore combined for working capital and investment in VEM Plastic Molding Private Limited.

The next disclosed milestones are the November 11, 2026 record date, the November 19 opening and the December 3 scheduled closing date. Shareholders will also watch the basis of allotment expected on or about December 4 and whether Zodiac-JRD-MKJ deploys the estimated Rs 37.95 crore of net proceeds in fiscal 2026-27, as management has retained the ability to revise or reallocate the plan within applicable law.