Covance Softsol Limited has announced a crucial Rights Issue Committee meeting scheduled for August 21, 2025, to finalize the terms of its upcoming rights issue. The meeting will determine key aspects of the offering, including the issue price and entitlement ratio for fully paid-up equity shares with a face value of Rs. 10.00 each.

Rights Issue Details

The rights issue, which was initially approved by the company's board on August 14, 2025, aims to offer additional shares to eligible equity shareholders. This move is often seen as a way for companies to raise capital while giving existing shareholders the opportunity to maintain their proportional ownership.

Committee Meeting Agenda

The Rights Issue Committee will convene to discuss and decide on several critical elements:

1. Issue Price: The price at which new shares will be offered to existing shareholders.
2. Entitlement Ratio: The number of new shares that existing shareholders can subscribe to for each share they currently hold.
3. Other Modalities: Additional terms and conditions related to the rights issue.

Regulatory Compliance

In adherence to insider trading regulations and the company's Code of Conduct for Prevention of Insider Trading, Covance Softsol has implemented the following measures:

• The trading window for company securities will remain closed until 48 hours after the conclusion of the committee meeting.
• This closure is in compliance with the Securities and Exchange Board of India (SEBI) Prohibition of Insider Trading Regulations, 2015.

Company Information

Covance Softsol Limited, with its registered office in Hyderabad, operates under the CIN: L62011TS2023PLC175979. The company specializes in software solutions.

Investors and market participants are advised to await the outcome of the August 21 meeting for further details on the rights issue. The company is expected to make additional disclosures following the committee's decisions, which will provide more clarity on the terms of the offering and its potential impact on shareholders.

Covance Softsol , a newly demerged IT/ITES company, has reported a significant increase in standalone revenue for the quarter ended June 30, 2025, despite facing operational challenges and legal disputes.

Financial Highlights

• Standalone revenue surged 585% to ₹1,740.13 lakhs, compared to ₹254.08 lakhs in the same quarter last year.
• Net profit after tax increased by 4,884% to ₹828.27 lakhs.
• Consolidated revenue grew 43% to ₹3,327.77 lakhs.
• Consolidated net profit, however, declined 18% to ₹777.82 lakhs.

Business Operations and Challenges

Covance Softsol, formed through a demerger from Softsol India Limited in 2024, disclosed that its customer contracts with BSNL for providing SMS services to various banks were fully concluded during the previous financial year. These contracts have not been renewed, resulting in no active business operations currently.

Despite the lack of ongoing operations, the company reported sufficient cash balances to settle all liabilities as of June 30, 2025, and those estimated to arise in the next twelve months.

Legal Dispute

The company is facing a legal challenge from M/s Mudunuru Limited, which has claimed ₹12.05 crores from Covance Softsol. Management disputes this claim as false and fabricated, asserting that all obligations under the last business arrangement with Mudunuru, which ended in October 2022, have been fully settled. The company has obtained legal opinion stating that their defense is tenable and likely to succeed in defeating any petition under Section 9 of the IBC by Mudunuru Ltd.

Future Outlook

Management is currently exploring and researching the development of new technological products. This strategic move aims to pivot the company towards new business opportunities in the IT/ITES sector.

Financial Results Publication

In compliance with regulatory requirements, Covance Softsol has published its unaudited Standalone and Consolidated Financial Results for the first quarter ended June 30, 2025, in the following newspapers on August 15, 2025:

• Business Standard (English Daily)
• Nava Telangana (Telugu Daily)

The financial results were approved by the Board of Directors at its meeting held on Thursday, August 14, 2025.

Investors and stakeholders can access the detailed financial results on the BSE Limited's website ( www.bseindia.com ) and the company's website ( www.covance.ai ).

As Covance Softsol navigates through this transitional phase, the company's ability to develop new technological products and resolve its legal challenges will be crucial for its future growth and stability in the competitive IT/ITES sector.