Turning the Tide: Indian Infotech’s ₹470 Crore Rights Issue Paves Path for Expansion

Indian Infotech and Software Ltd (IISL) has officially approved a rights issue of as much as ₹470 million, a key fundraising measure after a series of adjourned board meetings during June 2025. The move, approved on June 23, 2025, is aimed at reinforcing the company's capital base and facilitating future business growth.

 

Key Highlights

Rights Issue Approval: The board of IISL approved raising up to ₹470 million by way of rights issue to shareholders as of record date, to be announced shortly.

 

Board Meeting Schedule: Approval follows a series of June board meetings that were adjourned due to lack of quorum, a testament to the company's persistent efforts in smoothing out the capital raising plan.

 

Strategic Realignment: The issue of rights comes after the company's decision not to pursue its original plan to raise funds through preferential issue of warrants due to regulatory issues and refocusing attention on a more general rights issue for current shareholders.

 

Use of Proceeds: Although the offer document pending in detail, past rights issues by IISL have generally been for working capital needs and general corporate needs.

 

Company Background: IISL, being a non-banking finance company, is predominantly involved in providing business loans and share trading. The company is almost debt-free but has witnessed declining promoter holding and weak finances in the recent past.

 

Re-Opening of Trading Window: In accordance with insider trading guidelines, the trading window of the company shall be re-opened 48 hours post-board approval pending any guidance by stock exchanges or SEBI.

 

Market Reaction: IISL shares are at ₹1.00 with a market cap of ₹127 crore.

 

What's Next?

 

Shareholders and investors would also be watching out for the entire rights issue offer document, including record date, entitlement ratio, and application procedure, to be announced in the near future. The move is viewed as an attempt to strengthen the balance sheet of IISL and aid its lending and investment activities.

 

"Indian Infotech and Software Ltd board has approved a rights issue of as much as ₹470 million, after a string of adjournments, in fresh momentum to its capital-raising plans." — Reuters 

 

Source: Reuters, TradingView, BSE Announcements, Screener, Economic Times