In a significant development today, Friday, August 8, 2025, Rajnish Wellness Ltd announced the closure of its rights issue, which ended notably undersubscribed. In a proactive move, the company’s promoters have committed to subscribing to the entire unsubscribed portion, ensuring the successful completion of the capital-raising exercise. This strategic action is expected to bolster investor confidence and maintain regulatory compliance.
Introduction
The rights issue by Rajnish Wellness Ltd concluded today, following a subscription period from July 10 to August 8, 2025. Despite the company's growing brand presence in the pharmaceuticals and wellness sector, the issue did not attract the full subscription from existing shareholders. Key company stakeholders, however, have reaffirmed their commitment to the company’s long-term vision by agreeing to subscribe to the entirety of the remaining shares.
Key Highlights
-
The rights issue closed on August 8, 2025, with shares offered at INR 1 each.
-
The rights entitlement was 19 equity shares for every 30 held as of the record date (June 3, 2025).
-
The total rights issue size was 48.67crore shares, amounting to INR 48.67crore.
-
The issue was fully payable at application, with shares slated for listing on the BSE.
Promoters’ Commitment
At a specially convened Rights Issue Committee meeting held at the company’s Mumbai office, promoters provided an official written undertaking to subscribe to all unsubscribed shares. This guarantees full subscription, preventing dilution of existing equity and signaling strong internal support for the company’s future.
Objectives of the Rights Issue
-
Meet additional working capital needs to drive expansion.
-
Facilitate the takeover of Milan Trading Company, a sole proprietorship.
-
Fund general corporate purposes, supporting operations across pharmaceuticals, sexual wellness, energy revitalization, and personal care segments.
Financial and Market Standing
-
Revenues experienced a sharp increase in FY2024 to ₹76.68crore, with a net profit of ₹1.03crore, compared to ₹0.46crore in FY2023.
-
As of today, Rajnish Wellness trades at ₹0.98 per share on the BSE, with a market capitalization of ₹75.31crore.
-
The company has established a broad sales and distribution network, covering 21 states and over 100,000 medical stores nationwide.
-
Its flagship brands include Playwin (sexual wellness), Rajnish Lotion, and Pia Lo Herbs.
Timeline and Next Steps
-
Rights issue closed: August 8, 2025.
-
Finalization of allotment: August 14, 2025.
-
Credit of shares to demat accounts: August 21, 2025.
-
Listing date: August 19, 2025.
Strategic Implications
Promoters’ intervention to cover the unsubscribed shares not only reflects their strong confidence but also stabilizes Rajnish Wellness Ltd’s capital structure. This move ensures the company continues with its expansion plans, especially amid rising consumer demand in health and wellness sectors.
Conclusion
Today’s announcement underlines a pivotal moment for Rajnish Wellness Ltd. As the promoters take the initiative to guarantee full subscription of the rights issue, the company is well-positioned to strengthen its operations and pursue growth opportunities across India.
Source: marketscreener.com, IPOCentral.in, IPOWatch.in, Investorgain.com, CNBCTV18.com, Moneycontrol.com
