A Delhi court has temporarily stayed the proposed rights issue of Advik Laboratories following a petition by Fairplan Distributors Pvt. Ltd., a significant shareholder in the company.
Fairplan Distributors sought urgent intervention to prevent the rights issue from proceeding pending examination of serious allegations concerning the affairs of the company.
The Patiala House Courts granted an ad-interim ex parte injunction, observing that a prima facie case existed and restraining the company and certain defendants from proceeding with the fundraising exercise.
As a result, has been restrained from progressing with key stages of the rights issue process, including regulatory filings, circulation of offer documents, acceptance of subscriptions, and allotment of shares.
The plaintiff has raised concerns over the utilisation of funds from previous capital-raising exercises and alleged corporate governance lapses. The allegations are yet to be examined by the court.
While refraining from commenting on the merits of the case, the court noted that allowing the rights issue to proceed could result in irreversible consequences before the dispute is adjudicated.
The matter will now proceed to the next stage of litigation, with Vikas Garg and the other defendants expected to file their responses and seek appropriate relief before the court.
The matter is scheduled for further hearing on August 22, 2026. Until then, Advik Laboratories’ proposed rights issue will remain on hold.
At 2:35 PM, Advik Laboratories shares were flat at ₹1.81 apiece on the .