Patel Engineering rises 5% in trade; what's driving investors' interest?

Patel Engineering shares rose 4.8 per cent on the BSE, logging an intra-day high at ₹33.48 per share. The buying on the counter came after the company’s fixed date to discuss details of a ₹500 crore fund raise through a rights issue. 

 

A meeting of the Rights Issue Committee will be held on November 28, 2025, to finalise the specific terms of this Rights Issue. This includes deciding the issue price, payment method, entitlement ratio, record date, and overall timeline, pending necessary approvals from stock exchanges and other regulatory bodies.

 

At 10:21 AM, Patel Engineering’s share price was trading 3.54 per cent higher at ₹33.05 per share on BSE. In comparison, the BSE Sensex was up 0.72 per cent at 85,194.76.

 

“A meeting of the Rights Issue Committee will be held on November 28, 2025, inter alia, to consider, discuss and decide various matters in connection with the Rights Issue,” the filing read.

 

On November 13, Patel Engineering’s board had approved  the offer and issuance of fully paid-up equity shares of the company for ₹500 crore, by way of a rights issue.  CATCH STOCK MARKET LIVE UPDATES TODAY

 

“The meeting of the Board of Directors of the Company (the "Board") held on November 13, 2025, approved the offer and issuance of fully paid-up equity shares of the company (the "Equity Shares") for an amount not exceeding ₹500 crore, by way of rights issue to the eligible equity shareholders of the Company ("Rights Issue"),” the filing read. 

 

A rights issue is a way for a company to raise fresh capital by offering new shares exclusively to its existing shareholders, usually at a discount to the current market price. Each shareholder gets the “right” to buy additional shares in proportion to their existing holding (for example, 1 new share for every 5 held). Shareholders can choose to subscribe to these shares, sell their rights (if they are tradable), or ignore the offer—though not subscribing typically leads to dilution of their ownership percentage. Companies use rights issues to fund expansion, reduce debt, or meet other capital needs while giving current shareholders the first opportunity to invest more.

 

Patel Engineering is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures and other kinds of heavy civil engineering works in areas like hydro, irrigation and water supply, urban infrastructure and transport.