Mehai Technology Limited Unveils Ambitious Rights Issue to Power Growth and Financial Strength

Rights Issue: Empowering Shareholders

The landmark rights issue offers existing shareholders a generous 1:1 entitlement at an attractive price of ₹2 per share, significantly below the recent ex-right price of ₹8.78. With over 3.7 crore shares available, the fully-subscribed issue will double Mehai’s capital base to ₹74 crore—a powerful catalyst for future scale and opportunity. Only shareholders as of September 18, 2025, with Indian addresses may apply, ensuring that long-term investors directly benefit from Mehai’s promising trajectory.

This offering also provides flexibility, as investors may renounce their entitlements in whole or part (both on-market and off-market), and the process is streamlined via ASBA for ease and transparency. The trading of Rights Entitlements on BSE throughout the subscription period further bolsters liquidity and investor engagement.

Strategic Use of Funds: Building Strength

The funds raised are earmarked for four pivotal areas, illustrating the company’s focus on sustainable growth:

• Repayment/Pre-payment of Borrowings: By allocating ₹33 crore to settle debts, Mehai is set to improve its financial health, lower interest expenses, and amplify shareholder trust.
• Working Capital Injection: With ₹14.75 crore directed towards working capital, Mehai is poised to scale operations, meet surging demand, and continue its innovation journey.
• Subsidiary Empowerment: Over ₹9 crore will support Mehai Aqua Pvt Ltd, facilitating repayment of its own bank loans and driving vertical growth in the packaged water segment.
• General Corporate Purposes: Up to a quarter of the proceeds will be applied to technology upgrades, new business ventures, and strategic initiatives that broaden market reach.

Robust Corporate Commitment

Mehai’s promoters, Dynamic Services & Security Limited, have pledged to subscribe to at least 30% of their rights entitlement, further strengthening confidence and stability in the market. Any subscription shortfall will be covered, subject to regulatory public shareholding requirements, ensuring a successful issue and underscoring the promoters’ long-term vision. Only dematerialized shares are to be allotted, providing safety and convenience for investors.

Exceptional Financial Performance and Outlook

Mehai’s latest financial results reflect dynamic momentum. For FY 2025, total revenue leapt to more than ₹100 crore, nearly six times its revenue just two years ago. Net profit has multiplied more than tenfold since FY 2023, reaching ₹7 crore on the back of expanded reserves and surpluses. Convertible warrants outstanding and an enlarged share capital suggest ample capacity for future capital raises and opportunities.

Timelines and Key Dates

• Rights Issue opens: September 26, 2025
• Closes: October 17, 2025
• Listing (expected): On or around October 24, 2025
• Renunciation deadlines: October 14 (on-market), October 16 (off-market)

Looking Forward: A Prospect of Opportunity

Mehai Technology Limited’s strategic, investor-centric rights issue not only strengthens its balance sheet but also builds the foundation for new opportunities and sector leadership. With strong financials, visionary management, and clear ambitions, Mehai stands ready to deliver tangible value and rewards for its shareholders and stakeholders.

By championing innovation and operational excellence, Mehai is set to shape the future of tech-enabled growth in India while fostering optimism and resilience across its diverse business lines.

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