Atal Realtech Ltd

Rights issue basics

• Proposed rights issue of up to ₹1,600 lakhs; price and record date to be announced.
• Eligible shareholders on record will receive rights; closing/opening dates to be notified.

Use of net proceeds

• Net proceeds expected to fund ARL land acquisition; ₹800 Lakhs and working capital ₹400 Lakhs.
• General corporate purposes may use up to 25% of gross proceeds.

Land parcels / ARL investment

• Two land parcels to be purchased by ARL from promoter-linked seller for ₹1,100 Lakhs.
• ARL to fund ₹800 Lakhs; balance ₹300 Lakhs via internal accruals/borrowings; parcels fair value ₹1,174.45 Lakhs.

Promoter & governance

• Board approved issue on 17 August 2026; promoters to not participate.
• Minimum 90% subscription; promoter group will not renounce.

Regulatory approvals & monitoring

• In-principle approvals from BSE and NSE for listing rights shares.
• Brickwork Ratings appointed to monitor net proceeds; funds in separate bank account.

Rights issue details

• Rights issue up to ₹1,600 Lakhs for eligible shareholders; in-principle approvals from BSE/NSE obtained; LOF filed; record date/price/ratio to be notified.
• Net proceeds: ₹800 Lakh to ARL for land; ₹400 Lakh for working capital; up to 25% general corporate.
• Land parcels: two parcels totalling ₹1,100 Lakh; ARL to acquire; area 14,150 sq m.
• Independent valuation: fair value ₹1,174.45 Lakh; aggregate consideration ₹1,100 Lakh is favorable.
• Related party transaction: ABH Developers back-to-back sub-contract; royalty 4% of ₹4,947 Lakh; ₹197.9 Lakh.
• Promoters will not subscribe or renounce; no subscription beyond entitlement.
• Minimum subscription 90%; non-subscription triggers refund within 4 days; interest for delay.
• Monitoring agency: Brickwork Ratings to monitor gross proceeds; proceeds to be held in separate bank account.
• Concentration risk: Top 5 customers 65% of revenue; Top 10 78%.
• Debt: outstanding borrowings ₹1,362.17 Lakh; cash flow from operations negative in FY2026.

Capital action: Rights issue

• Board approved rights issue of equity shares up to Rs 16 crore to eligible shareholders.
• Draft Letter of Offer approved; price, entitlement ratio, record date, timing to be decided.
• Subject to regulatory approvals under SEBI ICDR and applicable laws.

Rights issue details

• Instrument: Equity shares via a rights issue.
• Face value: Re 2 per equity share; entitlement ratio to be decided.
• Aggregate amount: up to Rs 16 crore.
• Target investors: eligible equity shareholders.
• Pricing and record date to be decided.
• Board approval obtained; regulatory approvals as required are pending.

Business overview

• Integrated civil works contractor for Government of Maharashtra with EPC and turnkey capability.
• Core segments include courts, hospitals, schools, mass housing, roads, irrigation, water.
• Wholly owned subsidiary Atal Realty Limited established for real estate development.
• Rights issue proposed to fund expansion and working capital.
• Order book: ₹519.15 Cr; 28 contracts; 21 live projects as of Jun 30, 2026.

Key operational highlights

• FY26 revenue ₹120.3 Cr, up 25%; PAT ₹6.49 Cr, up 83%.
• FY26 net worth ₹95.9 Cr; unexecuted order book ₹217.6 Cr.
• Q1 FY2027 revenue ₹10.97 Cr; YoY +3.5%; EBITDA ₹2.08 Cr; margin 18.93%.
• Q1 FY2027 PAT ₹1.00 Cr; margin 9.12%; EBITDA ₹2.08 Cr.

Financial performance

• FY26 total revenue ₹12,025.16 Lakhs (~₹120.25 Cr).
• PAT FY2026 ₹649.43 Lakhs; PAT margin ~5.40%.
• Operating cash flow FY2026: -₹19.44 Cr; financing inflows ₹22.02 Cr.
• Total borrowings FY2026: ₹13.62 Cr.

Capital structure & liquidity

• Rights issue of equity shares proposed; subject to approvals.
• Paid-up capital ₹24.78 Cr; authorised capital ₹28.00 Cr.
• New long-term focus on strengthening working capital via rights issue.

Strategic priorities & outlook

• Shift from sub-contracting to direct government contracting; disciplined order-book execution.
• Land acquisition progress via Atal Realty Limited.
• Rights issue to support expansion and working capital needs.
• Focus on Nashik/Maharashtra home-market opportunities.

Governance & leadership

• Omprakash Mohanlal Rungta appointed Additional Non-Executive Independent Director on 21 July 2026.
• Board includes Chairman & MD Vijaygopal Atal; Executive Director Amit Atal.

Meeting Details

• Board meeting scheduled for Monday, August 17, 2026; time and venue not disclosed.

Key Agenda Items

• Proposal to raise funds via issue of securities through various methods, subject to regulatory approvals.
• Other matters with chairperson's permission to be considered.

Other Notes

• No additional material notes disclosed in the filing.

Financial results approved

• Unaudited standalone and consolidated quarterly results for June 30, 2026 approved; Limited Review attached

Fund-raising status

• Fund-raising proposal deferred; to be considered at a subsequent meeting

Warrants and proceeds

• Promoter issued 45 lakh convertible warrants; 9 lakh exercised; 36 lakh outstanding
• Utilisation: 9.63 cr for general corporate; 17.0 cr for subsidiary; 11.89 cr for working capital
• Total proceeds: 38.52 crore

Compliance and governance

• Ind AS adoption completed; transition date 1 April 2022
• Audit Committee reviewed results; Board approved them

• Original board meeting date was 06 August 2026.
• New board meeting date is 12 August 2026.
• Reason for rescheduling: unavoidable reasons.
• Agenda includes fund-raising proposals pending shareholders/regulatory approvals.
• Unaudited quarterly results for quarter ended 30 June 2026, with Limited Review Report.
• Proposed fund-raising mode(s) to be decided by Board, subject to approvals.
• Trading window remains closed and will reopen per applicable SEBI regulations.
• Any other matter with chairperson's permission.