You are right that the rights entitlements or RE of Aditya Birla Fashions fell by 39% to Rs.6.85 on 16 July. Trading and renunciation of rights on the stock exchange is permitted till July 17, 2020. That was largely because the stock of Aditya Birla Fashions has fallen sharply in the last few days and that has pushed the RE prices also lower.

Aditya Birla Fashions plans to raise Rs.995 crore by issuing 9.046 crore equity shares at a price of Rs.110 per share. While the rights will close on July 22, 2020, the trading in the RE will close on 17 July itself. Under the terms of the rights issue, the eligible shareholders will get 9 partly-paid shares for every 77 fully-paid shares held on the record date.

Investors will have to pay Rs 55 per share at the time of subscription and the remaining amount will be paid in two equal instalments in January 2021 and July 2021. Aditya Birla Fashions intends to raise capital to reduce leverage and to strengthen its balance sheet. The stock price cracked due to a sharp increase in working capital requirements.