Pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, the Board of Directors at their meeting held on today has approved allotment of 2,35,35,491 Convertible Warrants on Preferential ....
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The Board of Directors of Emrock Corporation Ltd approved the allotment of 2,35,35,491 (about 2.35 crore) convertible warrants on a preferential basis at Rs. 11 per warrant. Each warrant can be converted into one equity share of Rs. 10 face value within 18 months, upon payment of the remaining 75% of the issue price. The company has received the upfront 25% amount of Rs. 6.47 crores from the allottees. Of the total warrants, about 74.6 lakh were allotted to three promoter group members, while the remaining 1.6 crore warrants were distributed among 24 non-promoter allottees, mostly individuals from the Patel family. Since warrants have been allotted (not shares), there is no immediate change in the company's paid-up equity capital. Full conversion within 18 months could potentially expand the equity base significantly.
This is a dilutive capital-raising move — if all warrants are converted, the equity base could grow by around 2.35 crore shares, which may dilute existing shareholders. The warrants are largely being taken up by promoter and Patel-family-related allottees, indicating insider confidence but also potential further promoter consolidation. Short-term stock price may face mild pressure due to dilution overhang, though the Rs. 6.47 crore inflow strengthens cash position.