Mega Nirman & Industries Reports Loss, Approves Rs 50 Crore Rights Issue

Mega Nirman & Industries Limited , a company involved in industrial and residential development projects, has reported a net loss for the quarter ended September 30, 2025, and announced plans for a rights issue. The company's board has also approved a significant investment in a township development project.

Financial Performance

Mega Nirman & Industries Limited reported a net loss of Rs 27.12 lakh for the quarter ended September 30, 2025, compared to a loss of Rs 7.60 lakh in the corresponding quarter of the previous year. The company's financial results show an increase in revenue from operations, which rose to Rs 456.12 lakh from Rs 0.00 lakh year-over-year.

The financial performance for the quarter and half-year ended September 30, 2025, is summarized in the table below:

Particulars (in Rs. Lakh)	Q2 FY2026	Q2 FY2025	H1 FY2026	H1 FY2025
Revenue from Operations	456.12	0.00	521.30	0.00
Other Income	8.83	19.51	21.19	31.10
Total Revenue	464.95	19.51	542.49	31.10
Total Expenses	473.30	16.97	569.61	38.70
Net Profit/(Loss)	(8.36)	2.54	(27.12)	(7.60)

Rights Issue and Strategic Decisions

The Board of Directors has approved a proposed rights issue of equity shares up to Rs 50 crore. To oversee and implement this process, the company has constituted a Rights Issue Committee.

Mega Nirman & Industries received Rs 25.09 crore from share warrant conversions during July-August 2025. Of this amount, Rs 23.30 crore has been utilized as project advances to Rudraveerya Developers Limited for an Industrial/Residential Township development project in Tehsil Badli, District Jhajjar, Haryana.

Investment in Township Development

The company's total capital commitment for the township development project with Rudraveerya Developers Limited aggregates to Rs 220 crore. This investment aligns with Mega Nirman & Industries' focus on industrial and residential development projects.

The Board has noted a proposal for further investment in Rudraveerya Developers Limited, pursuant to a collaboration agreement. However, details of this proposal have not been disclosed in the current financial report.

Auditor's Review

A N S K & Associates, the company's auditors, have conducted a review of the financial results. They have drawn attention to the utilization of funds from the share warrant conversions, emphasizing that the recoverability of the advances made to Rudraveerya Developers Limited is contingent upon the satisfactory progress and completion of the township project.

Outlook

While Mega Nirman & Industries faces challenges reflected in its current financial performance, the company's strategic investments and capital raising efforts suggest a focus on long-term growth in the industrial and residential development sector. The success of these initiatives will likely depend on the timely execution of ongoing projects and market conditions in the real estate sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+6.63%	+16.33%	+33.29%	+55.29%	+61.16%	+23.51%

Mega Nirman & Industries has undergone a significant change in its shareholding structure as M.D.S. Infrastructure Private Limited acquired a substantial stake through warrant conversion.

Acquisition Details

M.D.S. Infrastructure Private Limited has converted 20,00,000 warrants into equity shares of Mega Nirman & Industries, resulting in a 7.80% shareholding. The warrants, initially allotted on August 6, 2025, at Rs. 15 per warrant, have been converted into equity shares with a face value of Rs. 10 each.

Impact on Share Capital

Following this acquisition, Mega Nirman & Industries has seen a substantial increase in its total equity share capital:

Particulars	Before Acquisition	After Acquisition
Total Equity Share Capital (Rs.)	18,59,19,430.00	25,64,75,000.00
Number of Equity Shares	1,85,91,943	2,56,47,500

The conversion of warrants has led to an increase of 70,55,557 shares in the company's total equity share count.

Acquisition Mode and Timing

The acquisition was executed through a preferential allotment of warrants convertible to equity. The date of allotment for these warrants was August 6, 2025, with each warrant carrying the right to subscribe to one equity share upon payment of Rs. 15 per warrant.

Acquirer Status

M.D.S. Infrastructure Private Limited is not part of the promoter group of Mega Nirman & Industries. This acquisition represents a significant investment by an external entity in the company.

Market Listing

The equity shares of Mega Nirman & Industries are listed on the Bombay Stock Exchange (BSE), providing liquidity and trading opportunities for investors.

Regulatory Compliance

The acquisition has been reported in compliance with Regulation 29(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. M.D.S. Infrastructure Private Limited, represented by Director Dipak Pal, has duly submitted the required disclosures to the BSE.

This strategic move by M.D.S. Infrastructure Private Limited signifies a notable change in Mega Nirman & Industries' ownership structure, potentially influencing the company's future direction and operations.