What’s new

• Board approved rights issue of up to ₹90 crore, over 6x the company's market cap of ₹14 crore.
• Authorized share capital raised from ₹10 crore to ₹100 crore.
• Three new independent directors appointed; two resigned.

Why it matters

A capital raise this large relative to market cap is virtually unheard of for a nano-cap with near-zero trailing revenue growth. It either signals a fundamental restructuring or a massive dilution for existing holders. The terms will decide which.

What we’re watching

• Pricing and record date for the rights issue, critical for dilution math.
• Any hint of a business overhaul or acquisition to justify the capital.
• AGM on September 1 for shareholder ratification of the capital hike.

The full read

Mihika Industries, a nano-cap with a market value of just ₹14 crore, has approved a rights issue of up to ₹90 crore, more than six times its entire market cap. To make room, the board raised authorized capital from ₹10 crore to ₹100 crore, a tenfold jump. The company's trailing revenue is down 98.4% and its PAT is barely positive. The fundraising, offered to existing shareholders on a yet-to-be-fixed record date, could fund a major restructuring or wipe out current holders through dilution. Three new independent directors joined while two resigned. The open question is what Mihika plans to do with the cash and at what price it will ask shareholders to subscribe.

Primary source: BSE · NSE