Kati Patang Lifestyle to Raise ₹21 Crore via Rights Issue; Record Date Announced

Kati Patang Lifestyle Limited (formerly VirtualSoft Systems Limited) has announced a rights issue of ₹21 crore, offering partly paid-up equity shares to eligible shareholders. The decision was approved at the Rights Issue Committee meeting of the Board held on July 4, 2025.

The company has set the record date as July 10, 2025, to determine the shareholders eligible to participate in the rights issue.

Issue Structure and Pricing

The rights issue will comprise 1,02,56,651 partly paid-up equity shares of face value ₹10 each, issued at a price of ₹20 per share (including ₹10 premium). However, shareholders will not be required to pay the full amount upfront.

Payment Schedule:

The company will collect ₹10 per share at the time of application, and the remaining ₹10 will be collected through one or more calls, as decided by the Board in future.

Issue Entitlement Ratio and Capital Structure

The company has fixed the rights entitlement ratio as 2 rights shares for every 7 equity shares held by eligible shareholders as on the record date.

Share Capital Position:

• Pre-issue paid-up equity shares: 3,58,98,280

• Post-issue paid-up equity shares: 4,61,54,931 (assuming full subscription and payment)

Rights Issue Details (Annexure A Highlights)

The issue is being made in compliance with the SEBI (ICDR) Regulations, 2018, and SEBI’s master circular issued in November 2024.

Dematerialised Credit of Rights Entitlements

In line with SEBI’s circular dated January 22, 2020, the company will coordinate with NSDL and CDSL to credit the Rights Entitlements (REs) into the demat accounts of eligible shareholders in electronic form. The ISIN for the REs will be announced separately.

Other Terms and Schedule

The detailed Letter of Offer, including the issue timeline, method of application, rights renunciation process, and fractional entitlement handling, will be shared in due course.

The meeting approving the rights issue terms commenced at 9:00 PM and concluded at 10:30 PM on July 4, 2025.

Strategic Rationale

The proposed rights issue is aimed at strengthening the company’s capital base and offering existing shareholders an opportunity to participate in the company's future growth at an attractive price. This move also signals the management’s confidence in improving shareholder value through sustainable capital mobilisation.

Conclusion

With the announcement of the record date and pricing structure, Kati Patang Lifestyle has taken the next steps toward executing its ₹21 crore rights issue. Investors holding shares as on July 10, 2025, will be eligible to subscribe.

Further updates, including timelines, rights entitlement details, and application process, will be provided via the Letter of Offer and the company’s website.

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