Allotment of Equity Shares and Equity Convertible Warrants
Awaiting price reaction for this filing.
The board approved allotment of 67 lakh equity shares at Rs. 12 per share (face value Rs. 10, premium of Rs. 2) to non-promoter investors on a preferential basis, raising about Rs. 8.04 crore. It also allotted 27 lakh fully convertible warrants at Rs. 12 each, convertible into equal number of equity shares within 18 months, with potential additional inflow of Rs. 3.24 crore. The company has already received Rs. 81 lakh as 25% upfront subscription money for the warrants. Allottees include a mix of individual investors and foreign institutional funds such as NorthStar Opportunities Fund, Altitude Investment Fund, and Unico Global Opportunities Fund. Total potential capital raise from both instruments combined is around Rs. 11.28 crore.
Existing shareholders will see equity dilution from 67 lakh new shares, with further possible dilution if all warrants are converted in the next 18 months. The capital infusion strengthens the company's funds for business needs, and the participation of multiple institutional funds may be viewed as a positive sign of investor interest, though the small issue size limits material impact on the stock.