Praxis Home Retail Limited has set the stage for its upcoming rights issue, providing shareholders with an opportunity to increase their stake in the company. The home retail company has released key dates and details for the issue, which is scheduled to take place in August 2025.

Rights Issue Timeline

The Committee of Directors of Praxis Home Retail Limited has approved the following schedule for the rights issue:

Key Details

• Record Date: March 20, 2025
• The company will dispatch the Letter of Offer and Abridged Letter of Offer to eligible shareholders as of the record date.
• The board retains the right to extend the issue period, but it will not remain open for more than 30 days from the opening date.
• No withdrawal of applications will be permitted after the closing date.

Renunciation Process

Eligible equity shareholders are advised to complete the renunciation through off-market transfer in a manner that ensures the Rights Entitlements are credited to the demat account of the renounces on or before the issue closing date.

Corporate Action

This rights issue follows the company's earlier announcement on March 13, 2025, which detailed the Rights Issue Price and Rights Entitlement Ratio. The current announcement provides the finalized schedule and additional details for shareholders.

Praxis Home Retail Limited continues to keep investors informed about this significant corporate action. Shareholders and potential investors are advised to review the full Letter of Offer for comprehensive details about the rights issue.

Praxis Home Retail Limited (PHRL), a prominent player in the Indian retail sector, has announced the terms of its upcoming rights issue, aiming to raise up to Rs 495.8 crore to bolster its financial position and fuel growth initiatives.

Rights Issue Details

The company's Committee of Directors has approved the issuance of up to 4,95,80,000 fully paid-up equity shares with a face value of Rs 5 each. The rights issue is priced at Rs 10 per share, which includes a premium of Rs 5 per share. Existing shareholders will be entitled to subscribe to 11 rights equity shares for every 30 shares held, as determined on the record date set for March 20, 2025.

Key Highlights of the Rights Issue:

• Issue Size: Up to 4,95,80,000 equity shares
• Issue Price: Rs 10 per share (including Rs 5 premium)
• Rights Entitlement Ratio: 11:30
• Record Date: March 20, 2025
• Total Fund Raise: Up to Rs 495.8 crore (assuming full subscription)

Impact on Share Capital

The rights issue, if fully subscribed, will significantly expand Praxis Home Retail's paid-up capital:

This represents an increase of approximately 36.7% in the company's paid-up capital, potentially diluting existing shareholdings but providing a substantial influx of funds for the company's operations and expansion plans.

Procedural Details

PHRL has made arrangements with NSDL and CDSL for the credit of Rights Entitlements in dematerialized form to eligible shareholders' demat accounts. The ISIN for the Rights Entitlements is INE546Y20030, and these will be credited prior to the issue opening date.

Market Implications

The announcement of this substantial rights issue is likely to draw significant attention from both existing shareholders and potential investors. It presents an opportunity for current shareholders to increase their stake in the company at a predetermined price, while also potentially attracting new investors interested in Praxis Home Retail's growth story.

Investors and market analysts will be closely watching the subscription levels of this rights issue, as it will serve as an indicator of shareholder confidence in the company's future direction and management's strategic plans.

Conclusion

As Praxis Home Retail Limited moves forward with this capital raising initiative, stakeholders will be keen to see how the company utilizes these funds to drive growth, improve operational efficiency, and enhance shareholder value in the competitive Indian retail landscape.