Mangalam Industrial Finance Limited (MIFL) has announced a rights issue for 2025 with key details now available for existing shareholders and prospects alike. Here are the highlights and what shareholders need to know.
Key details of the issue
- The company is offering approximately 48,08,21,750 equity shares at a face value of ₹ 1 each.
- The issue price has been fixed at ₹ 1 per share (i.e., at par).
- The total amount to be raised through the rights issue is ₹ 48.08 crore.
- Entitlement ratio: existing shareholders will receive 1 rights share for every 2 fully paid-up equity shares held on the record date.
- Record date set at 23 September 2025.
- Rights issue opening date: 27 October 2025. Closing date: 7 November 2025.
Purpose & context
The primary aim of Mangalam Industrial Finance Limited (MIFL) the rights issue is to strengthen MIFL’s capital base and support its expanding operations as a non-banking financial company (NBFC). Specifically, MIFL intends to channel the net proceeds to fund its scaling up of lending operations and meet funding requirements tied to its NBFC activities.
What this means for shareholders
Dilution impact: Assuming full subscription, the share capital will increase significantly (existing shares + new shares). This may dilute the percentage ownership of shareholders who do not subscribe.
Opportunity to increase stake: Existing shareholders are given a preferential opportunity to buy additional shares at ₹ 1 each, which may be attractive if they believe in the company’s growth prospects.
Renunciation / rights trading: Shareholders may have the option to renounce their rights or sell the entitlements in the market (check the final offer document).
Need for decision & action: Shareholders must keep track of the record date, apply within the subscription window if they wish to participate, and review the letter of offer for terms.
Mangalam Industrial Finance Limited
Although the issue price is at face value (₹ 1), this does not guarantee future share price performance the underlying business fundamentals still matter.
The offer’s success depends on subscription levels. If undersubscribed, other shareholders or the company might have to pick up shortfall.
Shareholders should assess how the additional capital will be deployed simply raising funds is not enough; the company must execute effectively.
Understand the timing and mechanics: application process, payments, entitlement trading, listing of new shares, etc.
Consider personal portfolio implications: subscription cost, effect on shareholding percentage, and whether the investment aligns with your risk profile and investment horizon.
Mangalam Industrial Finance Limited