Allotment of 750000 equity shares against warrants to Non-Promoter
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HB Estate Developers has allotted 750,000 equity shares to non-promoter Ms. Neha Jain upon conversion of an equivalent number of convertible warrants. The shares were issued at ₹65.25 each (including ₹55.25 premium over the ₹10 face value), for a total consideration of about ₹4.89 crore. The allottee, who held no shares before, now owns 3.38% of the company post-allotment. This follows an earlier intimation dated April 17, 2024, when the warrants were originally issued on a preferential basis. The company's paid-up equity capital has now risen to ₹22.21 crore, comprising 2.22 crore fully paid-up equity shares of ₹10 each. The new shares will rank equally with existing equity shares.
This is a routine conversion of previously issued warrants into equity shares and results in minor dilution (about 3.38% to the new non-promoter shareholder). For existing shareholders, the economic impact is limited as the share base expands only marginally, and the company has already received the full consideration.