Allotment Of Fully Convertible Equity Warrants On A Preferential Basis.
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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.
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.