Atal Realtech Limited has informed the Exchange about Preferential issue
ATALREAL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Atal Realtech's board approved a preferential issue comprising 1,68,75,000 equity shares to public category investors and 72,00,000 convertible warrants to the promoter, all priced at Rs. 16 per share/warrant (a Rs. 14 premium over the Rs. 2 face value). Each warrant is convertible into one equity share within 18 months, with 25% payable upfront and the rest on conversion. The board also raised the authorised share capital from Rs. 23 crore to Rs. 28 crore to accommodate the issue. The total potential fundraising is around Rs. 38.5 crore if all warrants are converted (Rs. 27 crore from equity shares plus Rs. 11.52 crore from warrants). The company says proceeds will be used for growth, including capacity expansion, sales & marketing, and R&D. An EGM has been scheduled for July 5, 2025 to seek shareholder approval.
On a fully converted basis, the total share count will rise from about 11.10 crore to 13.51 crore, diluting existing public shareholders by roughly 18%, while the promoter's stake moves marginally from 32.83% to 32.31%. The promoter putting in his own money signals confidence, but retail investors should note the meaningful equity dilution and the speculative nature of small-cap preferential issues.