7NR Retail Scraps ₹28 Crore Rights Issue Amid Low Subscription, Board Cites Strategic Reassessment

7NR Retail Ltd has officially cancelled its ₹28.01 crore rights issue following a board resolution passed on July 22, 2025. The issue, which opened on June 23 and was extended to July 22, failed to garner sufficient investor interest, prompting the company to reconsider its capital-raising strategy.

 

Key Highlights:

 

The rights issue offered 2.8 crore equity shares at ₹10 each, with a 1:1 entitlement ratio for existing shareholders.

 

As of July 11, 2025, the issue was subscribed only 0.01 times, with just 1.74 lakh bids received on BSE.

 

The board cited market conditions and investor sentiment as key factors behind the cancellation.

 

Operational Context:

 

The company had planned to use the proceeds for working capital and general corporate purposes.

 

Despite multiple extensions and promotional efforts, the issue failed to attract meaningful participation.

 

Trading of Rights Entitlements (REs) was also sluggish, with limited renunciation activity observed during the extended window.

 

Strategic Outlook:

 

7NR Retail is expected to explore alternative fundraising options, including private placements or debt instruments.

 

Analysts suggest the cancellation may help preserve shareholder value and avoid dilution at depressed valuations.

 

The company continues to focus on its core textile and apparel trading business, with plans to streamline operations and improve profitability.

 

Sources: Chittorgarh.com, Economic Times Markets, BSE Corporate Filings (July 2025)