Rights Issue Rewind: Markobenz Ventures Triggers Devolvement Amid Tepid Investor Response

Markobenz Ventures Ltd has officially approved the devolvement of its recent rights issue following a significant under-subscription, marking a critical moment in the company’s capital-raising efforts. The rights issue, which opened on June 10 and closed on July 7, 2025, failed to attract sufficient investor interest, prompting the board to initiate devolvement procedures to address the shortfall.

Key Highlights From The Rights Issue Outcome

- Total issue size: 4.8 crore equity shares at Rs 10.2 per share, aggregating Rs 48.96 crore  
- Subscription ratio: Only 0.05 times as of July 4, 2025, with 25.3 lakh shares bid on BSE  
- Entitlement ratio: 5 rights shares for every 2 fully paid-up equity shares held on record date (May 28, 2025)  
- Rights entitlements traded under symbol MARKOB-RE1 until July 2, 2025  
- The issue was extended from June 25 to July 7 due to low demand  

What Devolvement Means For Investors

Devolvement refers to the process where underwriters or promoters step in to subscribe to the unsubscribed portion of a rights issue. In this case:

- Promoter Nirupama Khandke is expected to absorb a significant portion of the unsubscribed shares  
- Eligible shareholders who applied will likely receive full allotment of their entitled shares  
- Additional applications may be allotted proportionately, subject to availability  
- Refunds for unallotted shares will be processed post finalisation of allotment  

Background And Strategic Context

Markobenz Ventures, formerly Evergreen Textiles Ltd, has pivoted to trading organic agricultural commodities in the B2B segment. The rights issue was intended to fund:

- Working capital requirements  
- General corporate purposes  
- Issue-related expenses  

Despite a modest market cap of Rs 77.7 crore and a current share price of Rs 11.35, the rights issue failed to gain traction, possibly due to limited retail visibility and muted investor sentiment.

Financial Snapshot

- FY2024 revenue: Rs 24.3 crore  
- FY2024 PAT: Rs 2.19 crore  
- Book value: Rs 1.66  
- P/E ratio: 43.2  

Next Steps And Market Implications

- Allotment date: June 30, 2025  
- Credit to demat accounts: July 1, 2025  
- Listing of new shares on BSE expected shortly thereafter  
- Promoter support may stabilise shareholding structure but raises questions on future fundraising viability  

Sources: Chittorgarh, IPO Central, TradingQnA, Markobenz Ventures official site, BSE India, Purva Sharegistry, Economic Times, Moneycontrol, Zerodha Community Forum, Rights Issue Information Portal 2025