Shakti Press Ltd (BSE: 526841) has extended the closing date of its ₹49.28 crore rights issue from May 18, 2026 to May 29, 2026, as confirmed by the company in its regulatory filing. The extension, cleared by the Rights Issue Committee on May 11, 2026, aims to provide eligible shareholders with additional time to exercise their entitlements. Following the disclosure to exchanges, the stock climbed nearly 5% on BSE, hitting an intraday high of ₹28.14. The company stated that this revised timeline is meant to provide a wider window for existing shareholders to help more investors use their rights entitlements within the issue period, rather than rushing before the earlier deadline.
The rights issue comprises up to 2,46,41,400 fully paid equity shares with each share having a face value of ₹10, aggregating to ₹49.28 crore. Existing shareholders can subscribe at ₹20 per share with an entitlement ratio of 7:1, meaning seven rights shares for every one fully paid-up equity share held. According to the latest regulatory update, credit of rights equity shares into demat accounts is expected on June 3, 2026, with the tentative listing date for these shares on the stock exchange being June 4, 2026. The last day for on-market renunciation of rights entitlements now falls on May 25, 2026, with the basis of allotment expected to be finalized around June 1, 2026.
As reported by Investing.com India, Shakti Press operates as a B2B model providing end-to-end solutions from design and prepress to printing, finishing, and delivery. The company specializes in printed cartons, corrugated boxes, labels, tags, stickers, wrappers, brochures, and customized print materials, along with a paper stationery division producing notebooks, exercise books, and copier paper. The company serves as an authorized dealer for leading brands including ITC, Ballarpur, and TNPL, while its in-house ink manufacturing facility ensures consistent quality and proprietary color formulations. According to the analysis, the company's market capitalization stands at approximately ₹75-80 crore as of mid-May 2026, with the stock trading around ₹26-28.
According to the Investing.com India analysis, Shakti Press has shown improved operating performance in 9MFY26 with a healthy operating margin of approximately 18%. However, the company faces significant challenges including high debtor days of 500-700+ days historically, low ROE of 0.45% and ROCE of 3.9% in FY25, and current promoter holding of around 45% which has declined from previous levels. The company's current borrowings are approximately ₹13-16 crore and the rights issue proceeds will be primarily used for working capital at ₹44.75 crore, with the remainder for general corporate purposes.
As reported by Investing.com India, the Indian printing and packaging industry is projected to grow significantly, with the paper packaging market expanding from around USD 17 billion in 2025 toward USD 30+ billion by 2033 at a CAGR of approximately 8%. Key growth drivers include expansion in education, sustainable packaging trends, and the Right to Education Act enactment. The company anticipates achieving business growth of 10-15% over the next three years, supported by India's GDP growth projection of 6-8% for the next 5-10 years. However, challenges include intense competition from larger, better-capitalized firms, raw material price volatility, and execution risks post-rights issue.
According to the Investing.com India analysis, the rights issue at a discount of ₹20 vs current ₹26-28 offers an averaging down opportunity for participating shareholders. However, the massive 8-fold equity dilution will significantly impact earnings per share in the short term. The company's current P/E ratio of approximately 115x TTM is extremely high due to tiny profits, while the post-issue net worth could jump to ₹65-68 crore improving leverage ratios. The analysis suggests the company may report 25% CAGR on average for both topline and bottom line with potential fair valuation of ₹50 by the next 12 months if operations scale proportionally with equity dilution.
