Approval of issuance of equity shares on preferential basis by the Board subject to approval of shareholder
Awaiting price reaction for this filing.
The Board of Krishna Capital and Securities Ltd approved a preferential allotment of up to 3 crore equity shares at Rs. 20 per share (face value Rs. 10 + Rs. 10 premium), aggregating Rs. 60 crore, to 5 allottees. Two of these allottees, Mr. Ashu Bishnoi (80 lakh shares) and Mr. Yagnik Tank (1.55 crore shares), are the acquirers under a separate Share Purchase Agreement (SPA) to buy a 42.87% promoter stake at Rs. 20 per share, which will trigger an open offer to public shareholders. The authorized share capital was increased from Rs. 4 crore to Rs. 34 crore to accommodate the new issuance. Post-allotment, the acquirers will hold about 70.88% combined and gain control of the company. The Board also appointed Mr. Vinod Singh (ex-SBI General Manager) as Additional Executive Director and scheduled an EGM on April 25, 2026 for shareholder approval.
This is a change-of-control event — existing promoters are exiting and new acquirers will take over the company, which typically leads to high stock volatility and an open-offer opportunity for public shareholders at a regulated price. The preferential issue at a premium (Rs. 20 vs Rs. 10 face value) signals the new management's confidence, but also brings significant equity dilution for existing public shareholders.