Conversion of Warrants of Equity Shares
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
The Board of Gemstone Investments approved the conversion of 3.18 crore convertible warrants into an equal number of equity shares of face value ₹1 each. The conversion price was ₹2.50 per share, which includes a premium of ₹1.50, bringing the total value of the allotment to about ₹5.96 crore. All these shares were allotted to two non-promoter allottees — Mitesh Chandrakant Shah (1.2 crore shares) and Rashmi Kantilal Gada (1.98 crore shares) — under a preferential allotment route. The company had already received 75% of the issue price upfront as required under SEBI rules. After this conversion, there are no warrants pending for conversion.
This results in equity dilution for existing shareholders since 3.18 crore new shares are being issued. The company has already collected the subscription money, which strengthens its capital base. The stock may see some short-term pressure due to increased share count, though the capital raised adds to the company's financial flexibility.