Please find attached the disclosure with respect to allotment of equity shares and convertible warrants on preferential basis.
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Awaiting price reaction for this filing.
The company has allotted 2,00,000 equity shares at ₹71 per share (₹61 premium over face value of ₹10) to Atul Chauhan HUF, raising ₹1.42 crore from the non-promoter category. Additionally, 53,00,000 convertible warrants were allotted at ₹71 each to 8 non-promoter allottees, with a total potential value of ₹37.63 crore; the company has received 25% upfront (₹9.40 crore). The largest allottee is Rajendra Chodankar with 40 lakh warrants (₹28.4 crore potential). Post-allotment, the paid-up equity capital rises from ₹2.475 crore to ₹2.675 crore, an ~8% increase. The preferential issue is being done under SEBI ICDR Regulations Chapter V to raise capital from non-promoter investors.
This is a small-cap preferential issue that expands the share count by ~8% (with warrants, the fully diluted increase could be much larger if all warrants convert). Existing shareholders may face dilution, but the capital infusion could strengthen the balance sheet for business expansion.