If you are a shareholder of JTEKT India or an investor in the auto sector, here’s some big news for you! The company has announced a Rights Issue to raise ₹250 crore, giving existing shareholders a chance to buy more shares at a discounted price. But is this a golden opportunity or just another corporate move? Let’s understand everything in simple terms.
What Is a Rights Issue?
A Rights Issue means a company offers its existing shareholders the right to buy additional shares at a set price before offering them to the public. In this case, JTEKT India is offering new shares of ₹1 face value at ₹108.10 (including a premium of ₹107.10).
The ratio is 1:11, meaning if you currently hold 11 shares, you can buy 1 additional share through this issue.
Key Dates and Details
- Record Date: July 25, 2025 — only shareholders who own shares on this date will be eligible.
- Issue Opens: August 4, 2025
- Issue Closes: August 12, 2025 (may be extended if needed)
- Renunciation Option: If you don’t want to buy new shares, you can sell your rights to someone else in the market.
Rights Issue Summary
| Point | Detail |
|---|---|
| Issue Size | ₹250 crore |
| Price per Share | ₹108.10 (Face Value ₹1 + Premium ₹107.10) |
| Issue Ratio | 1 new share for every 11 existing shares |
| Total Shares After Issue | 27.73 crore (from current 25.42 crore) |
Why Is JTEKT India Raising Funds?
JTEKT India is a leading manufacturer of steering systems and auto components, with rising demand in the electric vehicle (EV) and passenger car markets. The company plans to utilize the funds to:
- Invest in new technologies for EVs and advanced auto systems.
- Expand production capacity to meet growing demand.
- Strengthen its market position and supply capabilities.
Interestingly, both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have recently increased their stake in the company as of June 2025, signaling growing confidence in its future prospects.
Is This a Good Opportunity?
- Current Share Price: Trading around 34% above its 52-week low of ₹106.90.
- Market Cap: Over ₹3,600 crore.
- Sector Outlook: The growing EV adoption and rising automobile sales are expected to benefit companies like JTEKT India.
Participating in the Rights Issue can be a good opportunity for long-term investors, provided the company utilizes the raised capital efficiently.
Final Thoughts
If you believe in JTEKT India’s long-term growth story, especially its role in the evolving EV and auto component market, participating in the Rights Issue could be worth considering.
However, if you’re uncertain, you also have the option to sell your Rights Entitlements (REs) in the market. This is not financial advice — always do your own research and consult a financial advisor before investing.
JTEKT India’s latest move shows strong institutional interest and a clear growth strategy — a positive signal for investors keeping an eye on the auto sector’s future.
