Tuni Textile Mills Limited has announced that its rights issue has failed to meet the minimum subscription requirements, leading to the devolution of the entire offering. The Board of Directors, in a meeting held on December 24, 2025, formally approved the devolution after the issue failed to achieve the mandatory 90% minimum subscription threshold.

Rights Issue Devolution Details

The rights issue, which was designed to raise ₹42.32 crores through the issuance of equity shares, could not attract sufficient investor participation. The company had offered 42,32,44,440 equity shares of face value ₹1.00 each at an issue price of ₹1.00 per share on a rights basis to eligible shareholders.

Regulatory Compliance and Timeline

The rights issue was conducted in accordance with SEBI regulations, with the offering period running from November 24, 2025, to December 23, 2025. However, as per Regulation 86(2) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the company was required to achieve a minimum subscription of 90% of the issue size, which was not met.

Refund Process and Next Steps

Following the devolution decision, the company will not proceed with the allotment of equity shares under the failed rights issue. Tuni Textile Mills has initiated the refund process for investors who had applied for the rights issue. The company is coordinating with Purva Sharegistry (India) Pvt. Ltd, the Registrar and Transfer Agent (RTA), to provide instructions for refunding and unblocking amounts lying under ASBA (Applications Supported by Blocked Amount) accounts.

Impact on Corporate Plans

The failure of the rights issue represents a significant setback for the company's fundraising objectives. The devolution means that Tuni Textile Mills will need to explore alternative funding mechanisms to meet its capital requirements. The company had previously demonstrated strong regulatory compliance by publishing advertisements across multiple newspapers and maintaining transparent communication throughout the rights issue process.

The Board's swift decision-making process, with the meeting concluding within 15 minutes of commencement, indicates the clear-cut nature of the devolution decision based on subscription data. Investors who participated in the rights issue can expect their blocked funds to be released through the established refund mechanism coordinated between the company, RTA, and banking partners.

Tuni Textile Mills Limited , a player in the Indian textile industry, has announced a significant business development. The company has secured a purchase order worth Rs 10 crore from Zee Fabric, Mumbai, for the supply of finished fabrics for uniforms and apparels.

Order Details

The domestic order, which excludes applicable taxes including 5% GST, is to be executed within a six-month timeframe. Here are the key details of the order:

Company Disclosure

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Tuni Textile Mills Limited has made a formal disclosure to the BSE Limited. The company has confirmed that this order does not fall under related party transactions, and there is no interest from the promoter/promoter group or group companies in Zee Fabric, Mumbai.

Market Implications

This order represents a significant business opportunity for Tuni Textile Mills Limited. The Rs 10.00 crore contract not only provides a boost to the company's order book but also demonstrates its capability to cater to substantial domestic demands in the textile sector.

The timely execution of this order over the next six months may have positive implications for the company's revenue and potentially its market position in the domestic textile industry. However, investors and market watchers should note that the actual impact on the company's financials will depend on various factors, including successful order execution and overall market conditions.

As the textile sector continues to be a crucial part of India's manufacturing landscape, such orders underscore the ongoing demand for quality textile products in the domestic market. Tuni Textile Mills Limited's ability to secure this order may be seen as a positive indicator of its competitive standing in the industry.

Investors and stakeholders of Tuni Textile Mills Limited may want to keep a close eye on the company's performance over the coming months as it works to fulfill this significant order.