ECO Hotels & Resorts Limited (ECOHOTELS), a company in the hospitality sector, has announced a significant rights issue to raise up to Rs. 1,957.27 lakhs. The company, which operates under brands such as THE ECO GRAND™, ECO HOTELS™, and THE ECO™, is offering partly paid-up equity shares to its existing shareholders.

Key Details of the Rights Issue

Application Process

The company has emphasized that all applications for the rights issue must be made through the ASBA (Application Supported by Blocked Amount) process only. Eligible shareholders can apply through their respective banks' ASBA facility.

Important Dates for Shareholders

• Last Date for On-Market Renunciation: September 11, 2025
• Off-Market Renunciation: Allowed during the renunciation period

Listing and Trading Information

The existing shares of ECO Hotels & Resorts Limited are listed on the BSE under the scrip code 514402. The rights entitlements will be tradable on the stock exchange under a separate ISIN.

Use of Funds

While the specific use of proceeds was not detailed in the provided information, rights issues are typically conducted to raise capital for expansion, debt reduction, or other corporate purposes.

Company Background

ECO Hotels & Resorts Limited, formerly known as Sharad Fibres & Yarn Processors Limited, has undergone several name changes since its incorporation. The company now focuses on the hospitality sector, operating carbon-neutral hotel brands.

Investors and eligible shareholders are advised to refer to the Letter of Offer dated August 29, 2025, for complete details of the rights issue, including risk factors and terms of the issue. The company has published the pre-issue advertisement in Financial Express, Jansatta, and Metro Vaartha newspapers to ensure wide dissemination of information.

As with any investment decision, potential investors should carefully consider the terms of the offer and consult with their financial advisors before participating in the rights issue.

ECO Hotels & Resorts has unveiled plans for a significant rights issue, aiming to raise Rs. 1,957.27 lakh through the issuance of partly paid-up equity shares. The company's Right Issue Committee has set key dates and terms for this capital-raising initiative.

Rights Issue Details

The hospitality company will issue 1,28,76,808 partly paid-up equity shares at a price of Rs. 15.20 per share. The rights issue will follow a 1:4 ratio, offering shareholders one new equity share for every four shares held. Key dates for the rights issue are as follows:

• Record Date: August 29, 2025
• Issue Opening Date: September 8, 2025
• Last Date for Market Renunciations: September 11, 2025
• Issue Closing Date: September 17, 2025

Payment Structure

The payment for the rights issue will be structured in two parts:

The subsequent call(s) will be determined by the Board or a duly authorized committee at its discretion.

Corporate Actions

The rights issue follows a series of board meetings held on December 4, 2024, January 14, 2025, and March 5, 2025, where the issuance of partly paid-up equity shares was approved. The total amount to be raised through this rights issue will not exceed Rs. 2,000.00 lakh, in accordance with the Companies Act, 2013, and SEBI regulations.

Investor Considerations

Eligible shareholders are advised to ensure that any off-market renunciations are completed in a manner that credits the Rights Entitlements to the renouncee's demat account on or before the Issue Closing Date. The company's board retains the right to extend the issue period, not exceeding 30 days from the Issue Opening Date.

This rights issue represents a significant opportunity for existing shareholders to increase their stake in ECO Hotels & Resorts, as the company seeks to strengthen its capital base. Investors should carefully review the Letter of Offer, which will be filed with BSE Limited, for detailed terms and the application procedure.

ECO Hotels & Resorts, formerly known as Sharad Fibres & Yarn Processors Limited, operates various hotel brands including THE ECO GRAND™, ECO HOTELS™, and THE ECO™ among others. The company continues to expand its presence in the hospitality sector through strategic financial initiatives such as this rights issue.