Cyber Media Rights Issue 2025: Investor’s Guide to Dates, Price, Allotment & Strategic Decision

Founded in 1982, Cyber Media isn’t just another media company. It’s a technology-focused information powerhouse operating at the intersection of media, digital marketing, and market intelligence. Its core strength lies in its authoritative B2B publications and digital platforms, serving the information technology, telecommunications, electronics, and broader innovation ecosystem.

Cyber Media (India) Limited, a leading technology-focused media company, has announced a rights issue to raise approximately ₹9.90 crores. The rights issue opens on August 18, 2025, and closes on August 29, 2025, with the record date set for August 1, 2025.

Key Pillars of the Business:

1. Iconic Media Brands: Dataquest (IT leadership), PCQuest (consumer tech), Voice&Data (telecom), Global Services (IT-BPM outsourcing), and Dare (entrepreneurship/innovation). These brands command significant respect and audience loyalty within their niches.
2. Digital & Content Solutions: Beyond print, Cyber Media leverages its expertise to provide digital content marketing, lead generation, and custom research services for tech vendors and enterprises.
3. Events & Community Building: Industry conferences, awards (like the coveted Dataquest ICT Awards), and roundtables foster networking and position Cyber Media as a central industry node.
4. Market Intelligence: Leveraging its deep industry connections and editorial insight, the company offers research and advisory services.

By the end of this article, you’ll have all the information needed to make an informed decision about participating in the Cyber Media Rights Issue 2025.

What is a Rights Issue?

A rights issue is an invitation to existing shareholders to purchase additional shares at a discounted price, usually below the current market price. Companies use this method to raise capital without taking on debt.

Why is Cyber Media Conducting a Rights Issue?

Cyber Media aims to:

1. Strengthen working capital
2. Repay loans (converting debt to equity)
3. Fund general corporate purposes

Cyber Media Rights Issue 2025: Key Details

1. Important Dates & Timetable

2. Rights Issue Price & Ratio

• Issue Price: ₹15.8 per share (Face Value: ₹10)
• Entitlement Ratio: 2:5 (2 rights shares for every 5 shares held)
• Total Shares Offered: 62,66,897 equity shares
• Issue Size: ₹9.90 crores

3. Payment Structure

• Application Payment: ₹7.90 per share
• Final Call Payment: ₹7.90 per share

Financial Health Check: Deciphering the Numbers

Understanding Cyber Media’s financial trajectory is vital to assess the need for capital and the potential return on investment.

Restated Consolidated Financials (₹ Crore):

Analysis & Red Flags:

1. Revenue Contraction: The sharp drop in FY25 revenue (₹12.39 Cr vs ₹16.21 Cr in FY24) is concerning. Is this a temporary market blip, loss of major clients, structural decline in traditional media, or timing issues? Investors must demand clarity on this trend reversal.
2. Profit Volatility: The PAT figures show extreme swings – ₹3.10 Cr (FY23), ₹0.37 Cr (FY24), and a leap to ₹11.92 Cr (FY25). Such volatility is unusual for a stable media company. Critical Question: What drove the FY25 surge? Was it core operations, asset sales, or exceptional income? The provided snippet lacks explanation. Genuine sustainable profitability matters more than a one-off spike.
3. Expense Management: While expenses dipped slightly in FY25, they still exceeded revenue, implying the high PAT wasn’t driven by core operational efficiency but likely by other factors.
4. Restated vs. Snippet Discrepancy: The “Financial Report” snippet shows FY25 PAT as ₹11.92 Cr, but the “Company Financials” table (Restated Consolidated) shows FY24 PAT as ₹3.40 Cr and FY23 as ₹4.99 Cr. This inconsistency needs resolution. Always rely on the latest audited results or the Rights Issue prospectus (Letter of Offer).

Verdict: The financial picture is mixed and requires deeper investigation. The FY25 revenue decline is a major red flag. The PAT surge needs validation – is it sustainable? Investors should scrutinize the Management Discussion and Analysis (MD&A) section in the Letter of Offer for explanations.

Objects of the Issue: Where is Your Money Going?

Cyber Media intends to use the ₹9.9 Crores for:

1. Meeting Working Capital Requirements: Essential for day-to-day operations, funding content creation, marketing, events, and bridging receivables cycles. Given the revenue decline, ensuring adequate WC is crucial, but the amount raised seems substantial relative to recent revenue.
2. Repayment of Loan to Related Party (via Conversion): This is a significant point. Instead of cash repayment, the company is converting an outstanding loan from a related party into equity via this Rights Issue. This essentially transfers liability from the balance sheet (debt) to equity (dilution for existing shareholders). While it reduces debt burden, it dilutes ownership without bringing in new cash for operations from an external party. Understand the terms and necessity of this conversion.
3. General Corporate Purposes (GCP): A broad category covering potential strategic initiatives, technology upgrades, or other business needs. Lack of specificity here is common but requires trust in management’s prudent use.

Critical Assessment: The heavy focus on loan conversion (related party) and WC, coupled with the revenue drop, suggests the company is shoring up its balance sheet and liquidity position, potentially indicating underlying operational stress rather than aggressive growth funding. The lack of clear new growth initiatives funded by the issue is notable.

Valuation & Market Context: Is ₹15.8 a Bargain?

• Current Market Price (CMP – Approx): ₹18.36 (as per snippet on July 25, 2025).
• Rights Issue Price: ₹15.80.
• Theoretical Ex-Rights Price (TERP): This is the estimated price per share after the new shares are issued and listed, accounting for dilution.
  • Formula: (Old Shares * CMP) + (New Shares * Issue Price) / (Old Shares + New Shares)
  • Assumes 5 Old Shares @ ₹18.36 = ₹91.80
  • Gets Rights to 2 New Shares @ ₹15.80 = ₹31.60
  • Total Value = ₹123.40
  • Total Shares After Issue = 7
  • TERP = ₹123.40 / 7 = ₹17.63 per share
• Discount to TERP: ₹15.80 vs ₹17.63 = Approx 10.4% discount. This is the theoretical immediate gain for subscribers if the TERP holds.
• Discount to CMP: ₹15.80 vs ₹18.36 = Approx 14% discount.

Market Sentiment & Risks:

• 52-Week Range: ₹34.69 (High – Aug 2024) to ₹11.66 (Low – Apr 2025). The current price (~₹18.36) is significantly below the high.
• Recent Performance: Down ~2.46% on July 25th. Overall trend appears bearish from the highs.
• Risks:
  • Revenue Decline Sustainability: Is FY25 a one-off or a new trend?
  • Profit Volatility: Can they sustain the FY25 PAT level?
  • Media Industry Headwinds: Digital disruption, ad budget shifts.
  • Execution Risk: Effective use of funds, especially WC management.
  • Dilution: Shareholder ownership stake decreases (~28.6% dilution for non-participating shareholders).
  • Post-Issue Liquidity: Increased shares could impact trading volume initially.

Valuation Verdict: The TERP calculation suggests a theoretical discount, making the rights price appear attractive if you believe in the company’s long-term prospects and the sustainability of its recent financial performance (especially PAT). However, the significant revenue decline and high volatility inject considerable risk. The discount compensates for this risk, but the investment case hinges on a credible turnaround narrative.

Strategic Considerations: To Subscribe, Renounce, or Lapse?

1. Subscribe Fully (Recommended IF):
   • You are bullish on Cyber Media’s long-term prospects and believe management can reverse the revenue decline and stabilize profits.
   • You believe the current discount (10-14%) adequately compensates for the risks.
   • You have the financial capacity to invest the required amount.
   • You want to maintain your proportional ownership and avoid dilution.
2. Subscribe Partially:
   • You have a moderate view but want some exposure at a discount.
   • You have limited funds but still want to participate.
   • You apply for your entitlement but not for additional shares.
3. Renounce Your Rights (Sell REs):
   • You are neutral or bearish on the company’s near-term outlook.
   • You believe the TERP might be lower than calculated post-listing.
   • You need immediate cash or prefer to deploy capital elsewhere.
   • You can monetize your rights by selling them on the exchange during the renunciation window (expect a price close to the difference between CMP and Issue Price, minus a small premium/discount based on demand). This captures some value from the rights offering.
4. Let Rights Lapse:
   • You are decidedly bearish on Cyber Media.
   • You see significant downside risk post-issue.
   • You believe the discount is insufficient compensation for the risks.
   • The value of the REs is too low to bother selling (transaction costs may outweigh benefit).
   • Consequence: Your ownership stake will be diluted by approximately 28.6%.

Critical Questions Management Needs to Answer

1. Revenue Decline: What specific factors caused the significant drop in FY25 revenue? What is the strategy to reverse this trend?
2. Profit Spike: What drove the extraordinary PAT growth in FY25? Is this level of profitability sustainable? Provide a breakdown.
3. Loan Conversion: Detail the terms of the related-party loan being converted. Why is conversion preferable to cash repayment now? Does this benefit the related party disproportionately?
4. Use of Proceeds: Beyond generic terms, provide more granularity on the working capital requirements and the “General Corporate Purposes.” What specific growth initiatives are planned?
5. Market Strategy: How is Cyber Media adapting to digital disruption and evolving advertiser demands? What’s the plan for audience growth and engagement?

Renouncing Rights (Selling Entitlements)

If you don’t wish to subscribe, you can renounce your rights by August 14, 2025, allowing others to buy them.

Cyber Media Financial Performance (2023-2025)

Key Observations:

• Revenue decline in 2025, but PAT surged due to cost optimization.
• The company is focusing on debt reduction through this rights issue.

Should You Invest in Cyber Media Rights Issue?

Pros:

✅ Discounted Price (₹15.8 vs. current market price ~₹18.36)
✅ Debt Reduction improves financial health
✅ Strong B2B Media Presence (Dataquest, PCQuest, etc.)

Cons:

❌ Declining Revenue in 2025
❌ Market Volatility may impact listing gains

Verdict:

If you’re a long-term investor and believe in Cyber Media’s growth in tech media, this rights issue could be a good opportunity.

Cyber Media Rights Issue Allotment & Listing

• Allotment Status: Check on Link Intime after August 21, 2025.
• Listing Date: Expected in September 2025 (BSE & NSE).

Frequently Asked Questions (FAQs)

1. What is the last date to buy shares to be eligible for the rights issue?

Answer: July 31, 2025.

2. Can I sell my rights entitlement?

Answer: Yes, until August 14, 2025.

3. What if I miss applying for the rights issue?

Answer: Your entitlement will lapse, and the company may offer unsubscribed shares to others.

4. How many shares will I get in the rights issue?

Answer: For every 5 shares held, you get 2 rights shares.

5. When will the rights shares be listed?

Answer: Expected in September 2025 (exact date to be announced).

Conclusion

The Cyber Media Rights Issue 2025 presents a clear opportunity to acquire shares at a discount to the current and theoretical market price. However, this opportunity comes shrouded in significant questions stemming from a sharp revenue decline and extreme profit volatility.

The Investment Case hinges on:

1. Credible Explanation: Management must convincingly explain the FY25 revenue drop and PAT surge in the Letter of Offer and investor communications.
2. Turnaround Confidence: Investors need to believe in management’s ability to stabilize and grow revenue while maintaining reasonable profitability.
3. Risk Appetite: The theoretical discount is attractive, but the underlying business risk is currently elevated.

Recommendation:

1. Existing Shareholders: Do not ignore this issue. Make an active decision – subscribe, renounce, or consciously let lapse. Passive inaction leads to dilution.
2. Thorough Due Diligence: Download and meticulously read the Letter of Offer from the BSE/NSE or Registrar’s website. Scrutinize the financials, management discussion, and risk factors.
3. Assess Financial Health: Focus on the revenue trend explanation and sustainability of profits. The loan conversion warrants understanding.
4. Evaluate Risk-Reward: Does the ~10-14% discount adequately compensate for the company’s current challenges and the dilution? Does it align with your investment horizon and risk tolerance?
5. Act Before Deadlines: Mark July 31st (Last Trading Day for Eligibility) and August 1st (Record Date) in red. Decide on subscription/renunciation before the issue window closes on August 29th.

Cyber Media stands at a crossroads. This rights issue is less about explosive growth funding and more about balance sheet repair and weathering potential storms. Proceed with caution, armed with deep analysis and a clear understanding of both the discount on offer and the substantial questions demanding answers. The decision you make before August 29th could significantly impact your investment’s trajectory.

Right Issue Offer Details Document

The Cyber Media Rights Issue 2025 presents an opportunity for existing shareholders to increase their stake at a discounted price. With a clear focus on working capital and debt reduction, the company aims to strengthen its financial position.

Key Takeaways:
✔ Issue Price: ₹15.8 per share
✔ Ratio: 2:5 (2 shares for every 5 held)
✔ Apply via ASBA or Offline Form
✔ Allotment by August 21, 2025

For the latest updates, visit or check Link Intime.

Would you invest in this rights issue? Let us know in the comments!

Disclaimer: This article is for informational purposes only. Please consult a financial advisor before investing.