Covidh Technologies Launches ₹8.09 Crore Rights Issue at ₹10/Share, Entitlement Ratio Set at 25:1

Image Source : covidhtechnologies.com

Covidh Technologies Ltd has announced a ₹8.09 crore rights issue, offering 80.85 lakh equity shares at ₹10 each. The entitlement ratio is set at 25:1, with the issue opening on November 3 and closing on November 10, 2025. The move aims to strengthen capital structure and support future growth initiatives.

Covidh Technologies Ltd has unveiled a significant capital-raising initiative through a rights issue worth ₹8.09 crore, aimed at bolstering its financial base and funding strategic growth. The company will issue 80,85,550 fully paid-up equity shares at a face value of ₹10 per share, with a rights entitlement ratio of 25:1, meaning shareholders will receive 25 new shares for every 1 share held.

🧾 Major Takeaways:

Issue Details: The rights issue is priced at ₹10 per share, aggregating to ₹8,08,55,500. This represents a substantial increase in the company’s share capital from 3,23,422 to 84,08,972 shares, assuming full subscription.

Entitlement Ratio: Shareholders will be entitled to 25 equity shares for every 1 share held as of the record date, which is set for October 24, 2025.

Issue Timeline:

Opening Date: November 3, 2025

Closing Date: November 10, 2025

Rights Entitlements: Will be credited to eligible shareholders’ demat accounts prior to the issue opening.

Purpose of the Issue: The capital raised will be used to enhance working capital, fund expansion plans, and strengthen the company’s balance sheet, positioning Covidh Technologies for long-term scalability.

Shareholder Impact: The rights issue offers existing shareholders an opportunity to increase their holdings at a discounted price, potentially improving liquidity and market participation.

Corporate Strategy: This move aligns with Covidh’s broader strategy to capitalize on growth opportunities in the IT and digital services space, while maintaining a lean capital structure.

📌 Notable Updates:

The rights issue is expected to improve the company’s equity base and reduce dependence on external borrowings.

Analysts view the deep discount and high entitlement ratio as a shareholder-friendly move, though dilution risk remains for non-participating investors.

With a compelling offer structure and clear strategic intent, Covidh Technologies is positioning itself for accelerated growth and operational resilience in the evolving tech landscape.

Sources: 1. ScanX News – Rights Issue Announcement 2. SEBI Filing – Rights Issue Approval 3. Financial Express – Rights Issue Overview

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