Rights Issue at 59% Discount: Gujarat-Based Stock Below Rs 20 Offers Right Issue in 6:1 Ratio
Join Us
Follow Us
Gujarat Cotex is raising Rs 42.73 crore through a Rights Issue priced at Rs 5 per share, which is about 59 per cent lower than its current market price of Rs 12.24.
✨ AI Powered Summary
The Indian equity markets traded lower on Tuesday, with the benchmark Nifty 50 index down by 0.78 per cent at 23,930.90 during the session. Despite weakness in benchmark indices, selective buying interest remained visible in stock-specific textile counters. In this segment, Gujarat Cotex remained in focus as the company’s ongoing Rights Issue entered its final subscription phase, with May 5, 2026 fixed as the last date for on-market renunciation of Rights Entitlements. On Tuesday at 11:05 AM, Gujarat Cotex share price traded higher by 4.26 per cent at Rs 12.24.
Gujarat Cotex Rights Issue Details
Gujarat Cotex plans to raise Rs 42.73 crore through a Rights Issue, which opened for subscription on April 10, 2026 and will close on May 8, 2026. The company has fixed May 5, 2026 as the last date for on-market renunciation of Rights Entitlements. The Rights Issue is priced at Rs 5 per share, which is about 59 per cent lower than the current market price of Rs 12.24.
The issue comprises 8,54,64,000 fully paid-up equity shares aggregating to Rs 42.73 crore and is being offered in the entitlement ratio of 6:1, which means eligible shareholders can subscribe to 6 rights equity shares for every 1 fully paid-up equity share held.
Strong 9MFY26 Financial Performance
For the nine months ended December 2025, Gujarat Cotex reported revenue from operations of Rs 29.86 crore as against Rs 19.30 crore in the corresponding period last year, registering a growth of 54.7 per cent YoY.
Net profit stood at Rs 0.83 crore in 9MFY26 compared to Rs 0.46 crore in 9MFY25, reflecting a growth of 79.7 per cent YoY.
About Gujarat Cotex
Gujarat Cotex Ltd is engaged in the business of trading and manufacturing of textile products with focus on cotton, fabrics, yarn and related commodity-based textile activities. The company operates in the broader textile processing and trading segment and caters to domestic industrial and commercial demand.
Over the years, Gujarat Cotex Ltd has also undertaken capital restructuring and fundraising initiatives to strengthen its balance sheet and support working capital requirements. The ongoing Rights Issue is aimed at augmenting financial resources for future business operations and expansion requirements.
Share your thoughts in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.