Allotment of 93,28,358 Equity Shares for cash and 5,07,75,761 towards conversion of unsecured loan into equity shares
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The board approved allotment of 6,01,04,119 equity shares (face value Rs. 10) at Rs. 16.08 per share on a preferential basis to non-promoter entities. Of these, 5,07,75,761 shares (worth ~Rs. 81.6 crore) were issued to convert outstanding unsecured loans into equity, spread across 10 allottees. The remaining 93,28,358 shares (~Rs. 15 crore) were issued for cash to two entities — Safelock Consultancy Pvt Ltd and Wildpiano Software Solutions Pvt Ltd. As a result, paid-up equity capital surged from Rs. 3.30 crore (33 lakh shares) to Rs. 63.40 crore (6.34 crore shares), a roughly 19-fold increase in share count.
Massive equity dilution for existing shareholders — the share base expanded ~19x at a fixed price of Rs. 16.08. On the positive side, ~Rs. 81.6 crore of unsecured debt is being converted to equity, which will strengthen the balance sheet by reducing liabilities, though the company is also bringing in ~Rs. 15 crore of fresh cash. Existing public shareholders now hold a very small fraction of the expanded capital.