National Oxygen Ltd Withdraws Proposed Preferential Issue Due to Market Decline
National Oxygen Limited has announced the withdrawal of its proposed preferential issue of equity shares following a review of current market conditions. The Board of Directors approved this decision at its meeting on July 15, 2026.The company decided to withdraw the transaction after noting a significant decline in the market price of its equity shares since the proposal was initially approved. Consequently, the investor involved in the preferential issue expressed reservations regarding the previously approved issue price and requested that the proposed investment be postponed.
After due deliberation concerning the commercial viability of the planned transaction, the Board concluded that the approved issue price no longer reflected the prevailing market scenario. Therefore, National Oxygen Ltd has opted to withdraw the preferential issue at this stage.
The company stated that the withdrawal will not have a material adverse impact on its business operations or financial position. Looking ahead, National Oxygen Limited may consider undertaking a fresh fund-raising exercise, which could include another preferential issue, based on future market conditions and subject to necessary approvals.
Details regarding the cancellation of the proposed issuance are as follows:
| Item | Detail |
|---|---|
| Reason for Cancellation/Termination | The proposed preferential issue was withdrawn due to prevailing market conditions and the significant decline in the market price of the Company's equity shares. |
| Investor Feedback | The investor expressed reservations regarding the approved issue price and requested a postponement of the proposed investment, leading the Board to decide on withdrawal. |
Prior events related to the proposal included approval by the Board of Directors on April 29, 2026. Subsequently, shareholders approved the preferential issue and allotment of 9,50,000 equity shares of face value at ₹10 each at an issue price of ₹93.80 per equity share (including a premium of ₹283.80), aggregating to ₹78,91,10,000. This allotment was planned for Saraf Housing Development Private Limited, a promoter group entity.
Stock Price Movement
National Oxygen Ltd shares settled at ₹61.00 today, gaining 0.74%. The stock experienced movement within an intraday range defined by lows of ₹61.00 and highs of ₹63.99.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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