According to reports from CNBC TV18, Gujarat-based Jindal Worldwide has approved raising up to ₹650 crore through a rights issue of equity shares after its board meeting on Friday (August 7). The textile manufacturer said the rights issue will be offered to eligible shareholders on a record date to be announced later, subject to regulatory and statutory approvals. The board has constituted a Securities Issuance Committee to determine the issue price, rights entitlement ratio, record date, payment schedule and other terms of the issue. As per The Economic Times, this marks the first major rights-focused capital expansion approved by the board since 2018, representing a significant equity capital raising move.
As reported by CNBC TV18, the board also approved increasing the company's authorised share capital from ₹101 crore to ₹146 crore, subject to shareholder approval at the forthcoming annual general meeting (AGM) and other regulatory clearances. The proposal includes an amendment to the capital clause of the company's Memorandum of Association. The 40th AGM has been fixed for September 1, 2026, which will be held through video conferencing or other audio-visual means. The authorized share capital expansion by approximately 44.6% from ₹101 crore to ₹146 crore will ensure flexibility in future share allotments and accommodate the issuance of up to 146 crore shares of face value ₹1 each.
According to CNBC TV18, the fundraising approval comes after Jindal Worldwide reported a strong rise in earnings for the quarter ended June 2026. Consolidated net profit increased 85.8% year-on-year to ₹32.41 crore from ₹17.4 crore, while consolidated revenue from operations rose 2.7% to ₹554.72 crore from ₹539.9 crore. The company's shares were trading at ₹38.52 on Friday, up 0.05%, with the stock gaining more than 31% over the past month and around 44% over the last three months. As per The Economic Times, the recent bottom-line boost in Q1 FY27 was partly aided by a step-down subsidiary stake sale, with the company divesting a 45% stake in step-down subsidiary EV Volt in late June 2026, leading to a substantial one-off disposal gain.
As reported by CNBC TV18, among other decisions, the board approved the reappointment of Amit Yamunadutt Agarwal as Vice Chairman and Managing Director, with effect from September 3, 2026, subject to shareholder approval. The stock has gained more than 31% over the past month, around 44% over the last three months and nearly 33% so far this year. However, over the past year, it is up about 8%, although it remains down more than 42% over the last three years. The ₹650 crore rights issue will dilute equity depending on final pricing, but the fresh cash inflow will substantially strengthen the company's financial position, potentially reducing existing long-term debt. The cut-off date for determining eligible members to vote at the 40th AGM has been fixed as Tuesday, August 25, 2026, with the Register of Members and Share Transfer Books closed from August 26 to September 1, 2026.
