Outcome of Board Meeting held on Today, 13.05.2025
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The Board of Corporate Merchant Bankers Ltd approved raising authorised share capital from ₹7 crore (70 lakh shares) to ₹95 crore (9.5 crore shares) of ₹10 each. It cleared two preferential allotments to non-promoters: Issue 1 of up to 8.16 crore equity shares at ₹10 each (aggregating ~₹81.65 crore) to 10 investors by converting their existing unsecured loans into equity, and Issue 2 of up to 1.5 crore shares at ₹10 each (aggregating ₹15 crore) to two new investors. An Extraordinary General Meeting has been called on 9 June 2025, with 2 June 2025 fixed as the cut-off date for e-voting eligibility.
Massive equity dilution for existing shareholders - total proposed issuance of ~9.66 crore shares is over 13x the existing share base of 70 lakh shares, with the 12 incoming investors collectively set to become the dominant holders, signalling a likely change in control. Loan-to-equity conversion may improve the balance sheet, but retail investors should brace for sharp price volatility and a steep reduction in their proportionate stake pending EGM approval.