The Board has approved the preferential issue of share. the details of the same is mentioed in outcome of Board meeting
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The board of Arco Leasing Limited approved a preferential issue of up to 1,06,13,500 equity shares at Rs. 10 per share (face value), aggregating to about Rs. 10.61 crores. The shares will be allotted to 19 allottees, including two proposed new promoters — Jitesh Kothari and Atul Jaiswal — who will each hold around 36.63% after the issue. The authorized share capital is being raised to Rs. 15.50 crores to accommodate the new shares. The issue is priced at par (no premium), and all 19 allottees together will hold 97.79% post-issue, leaving existing public shareholders with only about 2.21%. The move is subject to shareholder approval at an EGM and other regulatory clearances.
Existing public shareholders face heavy dilution, dropping from their current stake to roughly 2.21%. There is effectively a change of control, with two new promoters together owning about 73% post-issue, which could shift the company's future direction. Since shares are issued at par (no premium), the company is not raising any value above face value, making the dilution purely equity-costly for current holders.