Announced Mon, 17 Nov · 20:42 IST

Allotment of Equity Shares and Convertible warrants through preferential basis as per the attached file.

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

The board approved the allotment of 97,53,750 equity shares at Rs. 40 per share (face value Rs. 10, premium Rs. 30) to 105 non-promoter allottees, raising Rs. 39.02 crore on a preferential basis. Additionally, 1,18,00,000 convertible warrants were allotted to promoter group members (Eswara Rao Nandam, Uma Nandam, and Vishaal Nandam) at Rs. 40 each, with 25% upfront consideration of Rs. 11.80 crore already paid. Post-allotment paid-up equity capital rises from Rs. 16.97 crore to Rs. 26.72 crore, and would further rise to Rs. 38.52 crore if the warrants are fully converted within 18 months.

Likely market impact

This is a significant equity dilution event for existing shareholders — total share count will jump from 1.69 crore to 2.67 crore immediately, and potentially to 3.85 crore after warrant conversion. While the company raises around Rs. 50.82 crore (if warrants convert), the substantial expansion of the share base and the promoter group increasing its stake signals capital infusion but also notable dilution for non-promoter shareholders.