BSEAviva Industries LtdHighNeutral
Announced Thu, 8 Jan · 17:13 IST

Allotment Of Fully Convertible Equity Warrants On A Preferential Basis.

Fund Raising View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

The board of Aviva Industries Ltd approved allotment of 32,40,000 fully convertible equity warrants at Rs. 28 per warrant (Rs. 10 face value + Rs. 18 premium) to two non-promoter allottees on a preferential basis. The allottees are Parmar Alkeshbhai Ratanbhai (16,20,000 warrants) and Solanki Arjunsinh Gambhirsainh (16,20,000 warrants), each receiving an equal share. The company has already received the 25% upfront payment (about Rs. 2.27 crore), with the balance 75% payable when the allottees choose to convert warrants into shares within 18 months. Currently, the paid-up share capital remains unchanged since only warrants have been allotted. If fully converted, each allottee will hold 6.22% of the expanded share capital, leading to a combined dilution of about 12.44% for existing shareholders.

Likely market impact

Existing shareholders face potential dilution of up to ~12.44% if both allottees fully convert their warrants within 18 months. The Rs. 9.07 crore fundraising will strengthen the company's capital base, but the small size and individual allottees suggest this is a niche capital infusion rather than a broad institutional raise.