Announced Tue, 23 Sept · 13:04 IST

We hereby inform you that the Board has considered, approved and allotted 70,00,000 (Seventy Lakhs) Convertible Warrants ('Warrants') at a price of Rs. 16.80/- (Rupees Sixteen and Eighty ....

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Awaiting price reaction for this filing.

AI summary

The Board of Darjeeling Ropeway Company Limited approved the allotment of 70,00,000 convertible warrants to non-promoter individuals at Rs. 16.80 each (Rs. 10 face value + Rs. 6.80 premium). Each warrant is convertible into one equity share within 18 months, with 25% upfront consideration paid now (totalling Rs. 2.94 crore) and the remaining 75% payable at conversion. The 10 allottees are individuals, with the largest being Managing Director Ashok Dilipkumar Jain (18.6 lakh warrants) and Dilip Keshrimal Sanklecha (15 lakh warrants). If fully converted, the company's paid-up share capital would rise from Rs. 3.05 crore to Rs. 10.05 crore — a potential dilution of over 3x from the current equity base of 30.5 lakh shares.

Likely market impact

Shareholders face significant potential dilution — up to 70 lakh new shares could be issued, more than tripling the current share count of 30.5 lakh. The preferential issue at a set price to identified non-promoters (including the MD himself) signals fresh capital raising but may weigh on the stock due to dilution risk; however, the 18-month conversion window and the requirement for additional 75% payment at conversion provide a buffer.