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CAPITAL RAISING • SHAREHOLDER CAPITAL RAISING

Fast-Track Equity Sourcing from Existing Shareholders

Strategic advisory for listed companies raising capital through rights issues under SEBI ICDR Chapter VI.

Book Mandate Consultation Check Diagnostic & Tools

Existing Equity Holders

Target Audience

Rights Entitlements (RE)

Trading Instrument

SEBI Reg 99

Fast-Track Eligible

Discounted VWAP Ratio

Pricing Ratio

STRATEGIC OVERVIEW

Promoter-First Advocacy in Rights Issue Advisory

A Rights Issue is one of the most cost-effective and equitable capital-raising mechanisms available to listed Indian companies. It offers existing equity shareholders the statutory preemptive right to purchase additional shares in proportion to their existing holding, typically at a strategic discount to the prevailing market price. With SEBI's introduction of tradable Rights Entitlements (REs) in dematerialized form, shareholders can either subscribe to the shares or monetize their rights on stock exchange trading screens. Glocal Consultants advises listed companies on rights ratios, pricing formulas, underwriting arrangements, fast-track SEBI approvals under Regulation 99, and promoter subscription commitments.

DELIVERABLES & SCOPE

What Glocal Delivers on Your Mandate

Rights Ratio & Pricing Formulation

Designing optimal rights entitlement ratios (e.g., 1:3 or 2:5) and pricing discounts balancing company capital targets with shareholder appetite.

Fast-Track Rights Issue Verification

Checking eligibility under SEBI ICDR Regulation 99 to bypass detailed SEBI draft review and accelerate market launch.

Promoter Underwriting & Standby Commitment

Structuring promoter commitment to subscribe to full entitlement plus unsubscribed portion without triggering SEBI SAST takeover code.

Letter of Offer (LOF) Drafting

Collaborating with merchant bankers and legal counsels on statutory disclosures, financial recasts, and use of proceeds.

Dematerialized Rights Entitlements (RE) Management

Coordinating with NSDL and CDSL for credit of tradable Rights Entitlements to shareholder demat accounts.

ASBA & UPI Subscription Management

Facilitating shareholder bidding through Applications Supported by Blocked Amount (ASBA) and registrar verification.

REGULATORY BENCHMARKS

Statutory Eligibility & Criteria

Governed under SEBI ICDR Regulations 2018 (Chapter VI - Rights Issue):

Statutory Metric	Regulatory Requirement
Listing Record	Company shares must be listed on a recognized stock exchange
Special Resolution	Board resolution required; shareholder approval needed if authorized share capital must be increased
SEBI Fast-Track Route	Continuous compliance with LODR for 3 years, complaints resolved, zero audit qualifications
Issue Size Below ₹50 Cr	Issues under ₹50 Cr do not require filing draft letter of offer with SEBI, only with stock exchanges
Takeover Exemption	Promoter subscription to unsubscribed portion exempt from open offer under SEBI SAST Reg 10(4)

EXECUTION WORKFLOW

5-Stage Milestone Roadmap

Issue Sizing & Ratio Modeling

Determining target capital, rights entitlement ratio, and issue price discount.

Board Approval & Intermediaries

Convening board meeting, appointing Lead Manager and Registrar, and fixing record date.

Letter of Offer & Exchange In-Principle

Drafting LOF, filing with stock exchanges, and securing in-principle listing approval.

Credit of REs & Trading Window

Crediting ISIN-based Rights Entitlements to demat accounts and opening secondary trading window.

Subscription, Allotment & Listing

Closing ASBA issue window, finalizing basis of allotment, and listing new equity shares.

VALUE REALIZATION

Strategic Advantages for Issuers

✓Substantially Lower Execution Costs and Banker Fees Than Public IPOs or FPOs

✓No Dilution of Existing Shareholder Base if Entitlements are Exercised

✓Expedited Regulatory Timelines via Fast-Track SEBI Route (As Short as 45 Days)

✓Promoters Can Consolidate Shareholding by Subscribing to Unsubscribed Portions

✓Tradable Rights Entitlements Allow Non-Participating Shareholders to Monetize Value

✓Strengthens Net Worth and De-leverages Balance Sheet for Future Borrowings

FREQUENTLY ASKED QUESTIONS

Mandate FAQs & Clarifications

Under SEBI's electronic Rights Entitlement framework, shareholders can sell their Rights Entitlements (RE) on the stock exchange during the RE trading window, directly monetizing their preemptive right.

Strategic Promoter Access

Schedule a Consultation for Rights Issue Advisory

Schedule an exclusive, non-disclosure advisory session with our senior capital markets partners. We evaluate your listing feasibility, capital structure, and valuation multiples.

Confidential Advisory RequestAll discussions strictly covered under bilateral Non-Disclosure (NDA).

Partner Desk

Direct Partner Contacts

Direct Advisory Hotline

+91 96257 55789

Corporate Inquiries

info@glocalconsultants.com

Corporate Headquarters

Glocal Consultants Private Limited
C-1119, KLJ Noida One,
Sector 62, Noida - 201309

Hours: Mon – Fri: 9:30 AM – 6:30 PM IST
Advisory desks in Noida, Mumbai & Bangalore