Mumbai based Alan Scott Industries Ltd has announced a rights issue to raise approximately ₹7.26 crore by offering equity shares to its existing shareholders. The move comes as part of the company’s effort to bolster its capital base and support ongoing business initiatives. The record date for determining shareholder eligibility for the issue has been set as May 2, 2025, while the issue will open for subscription on May 15 and close on May 29.
Rights Issue Details
Under the offer, Alan Scott Industries will issue 18,15,863 equity shares at a price of ₹40 per share, carrying a face value of ₹10. The rights entitlement has been fixed in the ratio of 1:2, meaning shareholders will be eligible to subscribe to one rights share for every two fully paid-up shares held on the record date.
Trading of Rights Entitlements (REs) will be permitted on the stock exchange from May 15 to May 23, allowing eligible shareholders the flexibility to sell or acquire additional entitlements. REs not subscribed to or sold during this period will lapse without value.
Application Process
Shareholders can apply for the rights shares through multiple channels:
- Online ASBA (Applications Supported by Blocked Amount), available via most banks’ net banking platforms.
- R-WAP (Registrar’s Web-Based Application Platform), hosted by Purva Sharegistry India Pvt Ltd.
- Offline ASBA, by submitting a physical form at designated SCSB (Self-Certified Syndicate Bank) branches.
The company has appointed Purva Sharegistry India Pvt Ltd as the registrar for the issue. Allotment status and application-related queries can be directed to the registrar via phone or their official website.
About the Company
Founded in 1994, Alan Scott Industries Ltd started its journey in the knitwear business before expanding into media, advertising, and ultimately establishing a stronghold in the health and hygiene sector. Today, the company is known for offering products such as air purifiers, oxygen concentrators, and UV light disinfectants, aimed at both household and institutional markets.
The company operates through a multi-vertical model, with active subsidiaries in retail, health & hygiene, and technology. A core part of its strategy involves developing retail stores that showcase lifestyle and fashion brands powered by nanotechnology and advanced hygiene solutions.
Financial Overview
Alan Scott Industries has faced financial headwinds in recent years. According to the company’s financial disclosures:
| Fiscal Year | Revenue (₹ Cr) | Expense (₹ Cr) | Profit/(Loss) After Tax (₹ Cr) |
|---|---|---|---|
| 2022 | 1.78 | 1.81 | 0.02 |
| 2023 | 0.53 | 1.57 | (1.04) |
| 2024 | 0.41 | 1.37 | (0.96) |
While revenue has shown a decline, the management hopes that this rights issue will provide the necessary capital infusion to drive growth and operational efficiency.
What This Means for Investors
The rights issue is priced at a significant discount compared to current market levels, offering existing shareholders an opportunity to increase their stake at a lower cost. However, the company’s recent financial performance may prompt investors to assess their long-term conviction in the business before participating.
With a focus on innovation and expansion into high-demand sectors like healthcare and hygiene, Alan Scott Industries aims to revitalize its growth trajectory. The funds raised through the rights issue could play a pivotal role in fueling its next phase of development.
Key Dates to Remember:
- Record Date: May 2, 2025
- Last Date to Buy Shares (for RE eligibility): April 30, 2025
- RE Trading Window: May 15 – May 23, 2025
- Subscription Period: May 15 – May 29, 2025
Looking Ahead
This rights issue provides an opportunity for existing shareholders to increase their stake at a discounted price. It may also help the company improve liquidity and fund expansion plans in its key verticals. Investors should assess their portfolio goals and consider the company’s long-term prospects before participating.
Are you an Alan Scott Industries shareholder? Let us know if you’re planning to subscribe in the comments below.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice.
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