QUERY :RIGHTS ISSUE withdrawal or retain in case of under subscribe

QUERY on Rights issue : In march 2024 Scanpoint geo withdraw rights saying 90% issue did not subscribe wherein today SILGO retail allotted share with just 80.10% subscription .
it indicate that it is PREROGATIVE of company to retain the subscription or revoke the rights issue itself if not subscribed minimum 90% ? @ShubhS9

I wasn’t able to find the exact circular, but as per this news:

The mandatory 90% minimum subscription would not be applicable to those issuers where object of the issue involves financing other than financing of capital expenditure for a project, provided that the promoters and promoter group of the issuer undertake to subscribe fully to their portion of rights entitlement.

From Scanpoint’s Letter of Offer:

Our Promoters and members of the Promoter Group vide their respective letters dated November 28, 2023 have given their intention to partially subscribe towards their portion of rights entitlements. Therefore, the minimum subscription criteria provided in regulation 86(1)(b) of the SEBI ICDR Regulations is applicable to the present Rights Issue.

From SILGO’s Letter of Offer:

The objects of the Issue involve (i) Repayment in full of unsecured loan availed from one of the Promoters, Mr. Nitin Jain; (ii) Repayment/ Pre-payment of certain secured loan availed from lenders of the Company either in part or full; (iii) To augment the existing and incremental working capital requirement of our Company and (iv) General corporate purposes.

Our Promoters and member of our Promoter Group have, vide their letters dated December 25, 2023 (the “Subscription Letters”) undertaken to subscribe, jointly and/ or severally to the full extent of their Rights Entitlement and subscribe to the full extent of any Rights Entitlement that may be renounced in their favour by any other Promoters or member(s) of the Promoter Group of our Company.

Accordingly, in terms of Regulation 86 of the SEBI ICDR Regulations, the requirement of minimum subscription is not applicable to the Issue.

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