BSEGemstone Investments LtdMediumNeutral
Announced Fri, 29 May · 17:27 IST

Conversion of Convertible Warrants into Equity Shares of the Company.

Warrants ConvertedFund Raising View source PDF

Price

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Price reaction · full curve 14 horizons · vs prior close
-2.4%1-day move
₹1.68
prior close
₹1.65
base price
After-mkt
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+3.0-0.6-0.6+0.0-2.4-1.8+0.6-4.2-4.2-4.8-3.6-5.4
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AI summary

Gemstone Investments Ltd's board approved the conversion of 52.6 million convertible warrants into 52.6 million fully paid-up equity shares of ₹1 face value each. The conversion price was ₹2.50 per share (₹1 face value + ₹1.50 premium), aggregating to approximately ₹9.86 crore received from the allottees. All 10 allottees were non-promoters, and all exercised their warrants in full with no pending conversions. The company completed this under SEBI ICDR Regulations Chapter V, the Companies Act 2013, and LODR disclosure requirements.

Likely market impact

Significant dilution of approximately 52.6 crore new shares hitting the market, which will substantially increase the company's equity base and reduce earnings per share. The ₹9.86 crore inflow strengthens the company's capital base but the large issuance could pressure the stock price short-term due to dilution.