Indrayani Biotech Limited completed the sale of 1.83% of its shareholding in subsidiary Dindigul Farm Product Limited on September 30, 2026. The transaction was executed through the open market, reducing Indrayani's stake in the entity to 27.05%.

The company filed an intimation with BSE under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing confirmed that the sale does not constitute a related party transaction and that no promoter or promoter group members hold any interest in the buyer entities.

Transaction details

The disposal involved shares of Dindigul Farm Product Limited, which reported a turnover of ₹90.04 crore (₹900,432,000) and paid-up capital of ₹24.43 crore (₹24,42,92,800). The subsidiary contributed 65.33% to the consolidated revenues during the last financial year.

What the numbers show

The divestment represents a marginal reduction in ownership while maintaining significant control. With the post-disposal stake standing at 27.05%, Indrayani Biotech retains a substantial equity position in Dindigul Farm Product Limited. Given that the subsidiary contributed 65.33% to revenues in the previous financial year, this minor dilution is unlikely to impact the parent company's consolidated top-line performance materially.

Indrayani Biotech has submitted its Letter of Offer to the Bombay Stock Exchange for a rights issue aimed at raising up to ₹4,878.88 lakh. The company plans to issue up to 3,25,25,897 partly paid-up equity shares at an issue price of ₹15 each, offered on a ratio of 5 partly paid-up shares for every 7 fully paid-up shares held as on the record date of April 28, 2026.

The issue opens on September 15, 2026, and closes on October 14, 2026. Investors must pay ₹3.75 per share on application, with the balance of ₹11.25 payable in subsequent calls determined by the board.

Issue Structure and Payment Terms

The rights issue is structured as partly paid-up equity shares with a face value of ₹10 each and a premium of ₹5 each. The payment schedule is divided into two stages:

The company will allot the shares in dematerialized form only. Rights entitlements will be credited to eligible shareholders' demat accounts before the issue opening date under ISIN INE007C20013.

Utilization of Proceeds

Indrayani Biotech intends to deploy the net proceeds of approximately ₹4,803.88 lakh towards specific corporate objectives. A significant portion is allocated for debt adjustment rather than fresh cash inflow.

• Working Capital: Up to ₹2,064.64 lakh (42.98% of net proceeds) will finance working capital requirements.
• Promoter Loan Adjustment: ₹500.00 lakh will be used to adjust an outstanding unsecured loan from promoter Swaminathan Govindarajan against his rights entitlement subscription.
• Investor Advance Adjustment: Up to ₹1,275.00 lakh will settle an unsecured advance received from Bougainvillea Investments Private Limited (BIPL). BIPL will acquire equity shares up to an 8% holding limit in the post-issue capital structure.
• General Corporate Purposes: The remaining ₹964.24 lakh (20.07% of net proceeds) will meet general corporate needs and issue expenses not exceeding ₹75.00 lakh.

Financial Context

The rights issue follows a financial year ended March 31, 2026, where the company reported standalone revenue from operations of ₹2,189.78 lakh, a decline from ₹3,776.91 lakh in FY25. Standalone profit after tax fell to ₹69.97 lakh compared to ₹144.63 lakh in the previous year. Consolidated revenue grew marginally to ₹13,783.12 lakh from ₹13,022.84 lakh, while consolidated profit after tax turned positive at ₹216.81 lakh, recovering from a loss of ₹613.36 lakh in FY25.

What the Numbers Show

The utilization plan reveals a capital restructuring strategy rather than pure growth financing. Over 36% of the net proceeds are designated for adjusting existing liabilities owed to promoters and BIPL through share allotment. This means no fresh cash enters the company for these specific amounts, effectively converting debt to equity while diluting existing shareholders who do not participate proportionately. The reliance on working capital funding for nearly 43% of the proceeds suggests liquidity constraints in operations, particularly given the standalone revenue contraction observed in FY26.