Board Meeting outcome for allotment of 22,94,965 Equity Shares by way of preferential issue through private placement to the proposed allotees as specified.
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The board approved the allotment of 22,94,965 equity shares at Rs. 29 each (face value Rs. 10, premium Rs. 19) on a preferential basis. This includes 1,00,000 fresh shares to a non-promoter (Chiranjeev Milkha Singh) raising Rs. 29 lakh, and 21,94,965 shares issued to promoter and non-promoters against conversion of loans worth Rs. 6.37 crore. The company decided not to allot 7,05,000 proposed shares (worth Rs. 2.04 crore) because allottees Mukesh Belani and V.B. Rupani failed to pay the subscription money, and this amount will be shown as unpaid in the balance sheet. Paid-up equity capital has increased to Rs. 3.29 crore (32,94,965 shares of Rs. 10 each).
Share count has risen roughly 7%, diluting existing shareholders, though the loan conversion into equity actually reduces the company's debt and strengthens the balance sheet. The failed subscription by two allottees (Rs. 2.04 crore) is a mild negative, but the company has chosen not to allot those shares, limiting damage.