Padam Cotton Yarns Limited has formally notified BSE Limited regarding the publication of pre-issue advertisements for its upcoming rights issue, in compliance with Regulation 84 of SEBI ICDR Regulations and Regulation 30 of SEBI Listing Regulations. The company submitted its intimation on February 28, 2026, following an earlier notification dated February 18, 2026.

Rights Issue Details

The textile company is launching a rights issue of up to 9.03 crore fully paid-up equity shares with a face value of ₹1.00 each. The shares are priced at ₹2.07 per share, including a premium of ₹1.07 per share, representing 2.07 times the face value.

Issue Timeline

The rights issue follows a structured timeline with specific dates for different phases of the offering process.

Advertisement Publication

The pre-issue advertisements were published on February 27, 2026, across multiple publications to ensure wide reach among eligible shareholders:

• Financial Express (English) - National Daily, All Editions
• Jansatta (Hindi) - National Daily, All Editions
• Financial Express (Gujarati) - Gujarat Region

The advertisements are also available on the company's official website at www.padamcotton.com , providing easy access for shareholders seeking detailed information about the rights issue.

Application Process and Requirements

The rights issue mandates the use of ASBA (Applications Supported by Blocked Amount) process for all applications. This system allows investors to apply by simply blocking funds in their bank accounts rather than making upfront payments.

Key Application Features:

• Mandatory ASBA Process: All investors must use ASBA for applications
• Dematerialized Form Only: Rights entitlements and allotments will be made only in demat form
• Multiple Application Channels: Physical mode at designated SCSB branches or online through SCSB websites
• Plain Paper Applications: Available for eligible shareholders in case of non-receipt of application forms

Regulatory Compliance and Disclaimers

The company has ensured full compliance with regulatory requirements. The Letter of Offer, dated February 18, 2026, has been filed with the stock exchange and submitted to SEBI for information and dissemination.

Important Regulatory Notes:

• SEBI Filing Status: Letter of Offer submitted for information as issue size is below ₹4900 crore threshold
• BSE Listing: Existing shares trade under symbol PADAMCO (ISIN: INE448D01025)
• US Restrictions: Rights and shares not registered under US Securities Act; no US offering intended
• Risk Factors: Detailed risk factors available in Letter of Offer beginning page 23

Key Intermediaries

The rights issue involves several key intermediaries to facilitate the process:

Company Background

Padam Cotton Yarns Limited was incorporated on November 2, 1994, under the Companies Act, 1956, with CIN L17112HR1994PLC033641. The company operates in the textile sector and maintains its registered office in Karnal, Haryana, with corporate office in Ahmedabad, Gujarat.

The company's promoter group includes Mr. Padam Sain Gupta, Mrs. Prem Lata, Mrs. Radhika Gupta, Mr. Rajeev Gupta, Mr. Vivek Gupta, M/s. Vivek Gupta HUF, Mrs. Rekha Gupta, and M/s. Rajeev Gupta HUF.

The rights issue represents a significant capital raising initiative for the company, with the board retaining the right to extend the issue period up to 30 days from the opening date, subject to regulatory requirements.

Padam Cotton Yarns Limited has officially confirmed the record date for its substantial rights issue following regulatory disclosures made to BSE Limited. The company has formally notified the exchange about fixing February 24, 2026, as the record date for determining shareholders eligible to participate in the rights offering, in compliance with SEBI regulations.

Rights Issue Framework

The rights issue represents a significant capital raising initiative, with the company having received in-principle approval from BSE Limited for the proposed offering. The issue follows the company's earlier board approval for raising funds not exceeding Rs 32.40 crore through the issuance of fully paid-up equity shares.

Regulatory Compliance and Timeline

The announcement comes pursuant to Regulation 30 read with Regulation 42 of the SEBI (LODR) Regulations, 2015, and Regulation 68 of the SEBI (ICDR) Regulations, 2018. The board meeting held on February 18, 2026, formalized the record date determination following the initial approval granted in an earlier board meeting.

The company has emphasized that this disclosure is made in furtherance to their previous intimation regarding the board's approval for the rights issue, demonstrating adherence to regulatory timelines and transparency requirements.

Shareholder Eligibility

Shareholders holding equity shares as of the close of business hours on February 24, 2026, will be eligible to receive rights entitlements and apply for the rights equity shares. The company has indicated that detailed terms and conditions will be outlined in the Letter of Offer, which will be filed with BSE Limited and made available on the company's website.

Corporate Structure

Padam Cotton Yarns Limited, incorporated under CIN L17112HR1994PLC033641, operates from its corporate office in Ahmedabad, Gujarat, with its registered office located in Karnal, Haryana. The company continues to maintain compliance with all applicable provisions of the Companies Act, 2013, and SEBI regulations throughout the rights issue process.