In-Principle Approval Letter for issue of 25,00,000 Equity Convertible Warrants
Price
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Fruition Venture Ltd has received in-principle approval from BSE to issue 25 lakh convertible warrants at Rs. 20 per warrant (face value Rs. 10 each), raising a total of Rs. 5 crore. The warrants will be allotted on a preferential basis to promoters and non-promoters and can be converted into equal number of equity shares later. The company will now move to the allotment stage and complete the required corporate actions with depositories.
This is a Rs. 5 crore fund raise via convertible warrants issued at a 100% premium over face value. For existing shareholders, this means potential dilution when warrants are eventually converted, though the Rs. 20 issue price suggests the company is raising capital from insiders/select investors at a healthy premium. Share price reaction will depend on the use of funds, which is not yet disclosed.