Intimation under announcement regulation 30 for allotment of warrant
Awaiting price reaction for this filing.
Sellwin Traders Ltd's board has approved the allotment of 3,69,63,556 convertible warrants to 94 non-promoter allottees at Rs. 8.40 per warrant via preferential issue. Each warrant is convertible into one equity share of Rs. 2 face value. Investors paid 25% (Rs. 2.10 per warrant) upfront, amounting to roughly Rs. 7.76 crore received now, with the balance 75% due within 18 months upon exercise. Four applicants who did not pay the 25% upfront were excluded, taking them out of the allotment. The largest allottee is Mideast Healthcare Private Limited with 40 lakh warrants, followed by several Patel-family HUFs and individuals holding sizeable lots.
This will lead to dilution of existing shareholders if all warrants are converted into equity shares over the next 18 months. However, only 25% of the money (about Rs. 7.76 crore) is coming in now, and the rest depends on warrant holders actually choosing to exercise. The stock may see short-term pressure due to the large potential dilution from a small-cap company.