Allotment of Equity Shares pursuant to Conversion of Warrant
Awaiting price reaction for this filing.
Sarda Proteins Ltd has converted 72,50,000 convertible warrants into an equal number of equity shares of face value Rs. 10 each. The warrants were originally issued on a preferential basis at Rs. 115 per warrant (Rs. 10 face value + Rs. 105 premium), and allottees have now paid the remaining 75% of the issue price, amounting to Rs. 62.53 crore. Following this conversion, the company's paid-up equity share capital has increased to Rs. 8.98 crore, comprising 89,75,900 fully paid-up equity shares. The largest allottee is Onix Renewable Limited, which received 70,00,000 equity shares, while the remaining shares were distributed among six other allottees. The new shares will rank pari passu with existing equity shares.
This conversion results in dilution of existing shareholders' equity by adding 72.5 lakh new shares to the share base. The fresh capital of Rs. 62.53 crore strengthens the company's balance sheet, though it also increases the total share count, which may put short-term pressure on earnings per share.